Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 252

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 252
---
 lower scope of work during plant outages performed in 2024 as compared to 2023.  The decrease was partially offset by:

•an increase of $6.4 million in compensation and benefits costs primarily due 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 $4.1 million in storm damage provisions.  See Note 2 to the financial statements for discussion of Entergy Mississippi’s storm damage mitigation and restoration rider; and

•an increase of $3.1 million in energy efficiency expenses primarily due to the timing of recovery from customers.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other regulatory charges (credits) - net includes regulatory credits of $7.3 million, recorded in second quarter 2024, to reflect the effects of the joint stipulation reached in the 2024 formula rate plan filing proceeding.  See Note 2 to the financial statements for discussion of the 2024 formula rate plan filing.

Other income increased primarily due to a decrease of $4.5 million in non-service pension costs primarily as a result of pension settlement charges recorded in 2023 and a reduction in 2024 in the amortization of deferred pension losses as a result of an amendment to a qualified pension plan spinning-off predominantly inactive participants into a new qualified plan, extending the amortization period for deferred losses.  See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” below and Note 11 to the financial statements for further discussion of pension and other postretirement benefits costs.

Interest expense increased primarily due to the issuance of $300 million of 5.85% Series mortgage bonds in May 2024 and higher carrying costs related to the deferred fuel balance, partially offset by the repayment of a $150 

374

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

million unsecured term loan, of which $50 million was repaid in May 2023 and $100 million was repaid in December 2023.

The effective income tax rates were 24.7% for 2024 and 23.0% for 2023.  See Note 3 to the financial statements for a reconciliation of