Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1041

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 3
Chunk 1041
---
 of managing capital and operations and maintenance (O&M) spending, which directly impacts this metric•Key measure evaluated by credit rating agencies•Management of cash flows enables the Company to strengthen its balance sheet, which reduces borrowing costs and supports affordability for customers•Target performance was set to equal to the prior year results, or 14.4%, which was believed to be a reasonable stretch goal because it exceeded the projected Adjusted FFO/Debt Ratio forecast as reflected in the Company's financial plan•Minimum performance: 14.0%•Maximum performance: 14.9%SafetyQuantitative measure based 50% on the Company's SIF count as defined by the Edison Electric Institute (EEI) and 50% on the Company's TRIR, with results of both sub-metrics being equally weighted•SIF count is the number of Entergy employee and contractor serious injuries and fatalities over a one-year period, with employee and contractor targets and results are combined to arrive at reported results and one fatality automatically setting the sub-metric result to zero•TRIR is based on Occupational Safety and Health Administration (OSHA) reporting guidelines and measures the number of work-related injuries and illnesses per 100 full-time employees over a one-year period•Supports our goal of maintaining a safe and incident-free workplace for all of our employees and contractors  •TRIR was incorporated as a sub-metric in 2024 because:◦It is a target that can be impacted by everyone since not all employees are exposed to high energies that lead to SIF events◦Improvements in TRIR are associated with improvements in enterprise safety culture, which should contribute to a reduction in SIF eventsSIF count•Target performance was set at a level representing top quartile performance among electric utilities for 2024, as reported by the EEI, or 5•Minimum performance: 7 •Maximum performance: 3•No payout if any fatalitiesTRIR•Target performance was set at 0.45, which represented significant improvement from 2023's result of 0.49•Minimum performance: 0.55•Maximum performance: 0.40

479

MeasureRationaleGoalCustomer NPSQuantitative measure based on a benchmark blind survey process for residential and business customers and a custom survey for large C&I customers, with the final result determined based on a composite of relative quartile ranking for residential and business customers and a numerical score for large C&I customers, equally weighted•The blind survey of residential