Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 355

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 355
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 of June 1, 2025 through May 31, 2026.  Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load.  They are not designated as hedging instruments.  Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement.  Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues.  The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights.  The total volume of financial transmission rights outstanding as of September 30, 2025 is 72,481 GWh for Entergy, including 15,442 GWh for Entergy Arkansas, 38,388 GWh for Entergy Louisiana, 8,133 GWh for Entergy Mississippi, 2,634 GWh for Entergy New Orleans, and 7,884 GWh for Entergy Texas.  Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

company as required by MISO.  Credit support for financial transmission rights held by Entergy’s non-utility operations business is covered by cash.  No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of September 30, 2025 and December 31, 2024.  Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas, Entergy Louisiana, and Entergy Mississippi as of September 30, 2025 and for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas as of December 31, 2024.The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of September 30, 2025 and December 31, 2024 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.InstrumentBalance Sheet LocationGross Fair Value (a)Offsetting Position (b)Net Fair