Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 254

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 254
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 SubsidiariesManagement’s Financial Discussion and Analysis

The increase was partially offset by:

•the timing of recovery of fuel and purchased power costs.  See Note 2 to the financial statements for a discussion of fuel and purchased power cost recovery;

•the timing of payments to vendors;

•lower collections from customers; and

•an increase of $15.5 million in interest paid.

Investing Activities

Net cash flow used in investing activities increased $177.2 million in 2024 primarily due to:

•an increase of $123.1 million in non-nuclear generation construction expenditures primarily due to higher spending on the Delta Blues Advanced Power Station project;

•an increase of $78.5 million in transmission construction expenditures primarily due to higher capital expenditures as a result of increased development in Entergy Mississippi’s service area;

•money pool activity; and

•a decrease of $33.8 million in receipts from the storm reserve escrow account, which was closed in July 2024.  See Note 2 to the financial statements for discussion of  Entergy Mississippi’s storm escrow account activity.

The increase was partially offset by:

•a decrease of $46.3 million in distribution construction expenditures primarily due to lower capital expenditures for storm restoration in 2024;

•the substantial completion and final payments totaling approximately $35.1 million in 2023 for the purchase of the Sunflower Solar facility by a consolidated tax equity partnership.  See Note 14 to the financial statements for discussion of the Sunflower Solar facility purchase; and

•a decrease of $11 million in facilities construction expenditures primarily due to the construction of a new transmission office in 2023.

Increases in Entergy Mississippi’s receivable from the money pool are a use of cash flow, and Entergy Mississippi’s receivable from the money pool increased $15.2 million in 2024 compared to decreasing by $26.9 million in 2023.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Financing Activities

Entergy Mississippi’s financing activities provided $154.8 million of cash in 2024 compared to using $41.8 million of cash in 2023 primarily due to the following activity:

•the repayment, prior to maturity, of $250 million of 3.10% Series mortgage bonds in June 2023