Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 751

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 751
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 granted cost recovery with respect to costs associated with Entergy Louisiana’s share of capacity and energy from Grand Gulf, subject to certain terms and conditions.  Prior to the divestiture of Grand Gulf energy and capacity to Entergy Mississippi, Entergy Louisiana retained and did not recover from retail ratepayers 18% of its 14% share of the costs of Grand Gulf capacity and energy and recovers the remaining 82% of its share in rates.  Entergy Louisiana was also allowed to recover through the fuel adjustment clause at 4.6 cents per kWh for the energy related to its retained portion of these costs.  Alternatively, Entergy Louisiana was permitted to sell such energy to non-affiliated parties at prices above the fuel adjustment clause amount, subject to the LPSC’s approval.

Effective January 1, 2025, Entergy Louisiana has divested all of its 14% share of capacity and energy from Grand Gulf and all of the capacity and energy from Grand Gulf that it purchases from Entergy Arkansas (approximately 2.43%) to Entergy Mississippi.  This divestiture is being effectuated initially under a designated PPA between Entergy Louisiana and Entergy Mississippi, which was accepted by the FERC in November 2024.  The MPSC approved the MSS-4 replacement PPA, effective as of January 1, 2025.  In 2025, System Energy, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans expect to file an amendment to the UPSA that will modify the purchasers’ entitlements to capacity and energy from System Energy’s share of Grand Gulf to reflect Entergy Louisiana’s divestiture, and when that amendment becomes effective, the designated PPA between Entergy Louisiana and Entergy Mississippi will terminate and Entergy Louisiana will cease to be a System Energy customer.  The effectiveness of that amendment to the Unit Power Sales Agreement will be subject to the review and acceptance of the FERC.

Availability Agreement

The Availability Agreement among System Energy and Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans was entered into in 1974 in connection with the original financing by System Energy of Grand Gulf.  The Availability Agreement provides that System Energy make available to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans all capacity and energy available from System Energy’s share of Grand Gulf.

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans also agreed sever