Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 1

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 3
Chunk 1
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 Six Months Ended June 30, 2024

Net income increased $122.6 million primarily due to a $131.8 million ($99.1 million net-of-tax) charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024, higher volume/weather, and higher retail electric price, partially offset by higher depreciation and amortization expenses and higher interest expense.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the opportunity sales proceeding.

Operating Revenues

Second Quarter 2025 Compared to Second Quarter 2024

Following is an analysis of the change in operating revenues comparing the second quarter 2025 to the second quarter 2024:

Amount(In Millions)2024 operating revenues$608.8 Fuel, rider, and other revenues that do not significantly affect net income61.6 Volume/weather14.1 Retail electric price13.2 2025 operating revenues$697.7 

Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.  “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The volume/weather variance is primarily due to an increase in industrial usage and an increase in weather-adjusted residential usage, partially offset by the effect of less favorable weather on residential sales.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals and technology industries, and an increase in demand from small industrial customers.  The increase in weather-adjusted residential usage is primarily due to an increase in customers.

The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2025.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing.

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

Total electric energy sales for Entergy Arkansas for the three months ended June 30, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential1,674 1,855 (10)Commercial1,393 1,419 (2)Industrial3,064 2,443 25