Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 519

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 519
---
 prepaid and accrued pension input, and System Energy filed exceptions to these rulings in October 2024.  In October 2024, the LPSC, the APSC, and the FERC trial staff filed separate briefs on exceptions; these parties generally argue that the presiding ALJ should have rejected System Energy’s filing entirely, rather than limit System Energy’s recovery of the prepaid and accrued pension costs.  Later in October 2024, System Energy, the LPSC, the APSC, and the FERC trial staff filed separate briefs opposing exceptions.If the ALJ’s determination is affirmed by the FERC, System Energy estimates refunds, including interest through December 31, 2024, of approximately $16 million to $21 million would be owed.  The ALJ's initial decision is not binding on the FERC and is an interim step in the hearing process.  No refunds will be owed in connection with this proceeding and no changes to System Energy’s pension cost recovery methodology will be implemented unless and until the FERC requires them in a final order.  This proceeding is not covered by the global settlements described above.

Storm Cost Recovery Filings with Retail RegulatorsEntergy LouisianaHurricane FrancineIn September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana and Entergy New Orleans.  The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.In December 2024, and subsequently amended in an errata filed in February 2025, Entergy Louisiana submitted an application to the LPSC seeking a determination that approximately $183.6 million in storm restoration costs associated with Hurricane Francine were reasonable and necessary and, therefore, eligible for recovery from customers, as well as approval to recover approximately $3.6 million in certain carrying costs from customers.  The $183.6 million includes approximately $152.8 million in distribution capital costs and approximately $29.8 million in non-capital costs; the balance consists of transmission and generation capital costs.  Entergy Louisiana proposes in its application to recover its distribution-related capital costs of $152.8 million through the distribution recovery mechanism of its formula rate plan.  Entergy Louisiana has further requested the LPSC to authorize recovery of these distribution-related capital expenses through an interim rate adjustment, subject to true-up and refund, that would begin with the first billing cycle of March