Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 51

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 51
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 4,892 4,510 8 Sales for resale:  Non-associated companies52 117 (56)Total4,944 4,627 7 

See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.

Other Income Statement Variances

Other operation and maintenance expenses decreased primarily due to contract costs of $2.0 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives and a decrease of $1.9 million in non-nuclear generation expenses primarily due to a lower scope of work performed in 2025 as compared to 2024.

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

Depreciation and amortization expenses decreased primarily due to the recognition of $13.8 million in depreciation expense in first quarter 2024 for the 2022 base rate case relate back period, effective over six months beginning January 2024.  The recognition of depreciation expense for the relate back period was effective over the same period as collections from the relate back surcharge rider and resulted in no effect on net income.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2022 base rate case.  The decrease was partially offset by additions to plant in service.

Other income increased primarily due to an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Orange County Advanced Power Station project and the Legend Power Station project.

Interest expense increased primarily due to:

•the issuance of $350 million of 5.55% Series mortgage bonds in August 2024;

•carrying costs of $3.4 million, recorded in first quarter 2025, related to the interim fuel refund.  The recognition of carrying costs is effective over the same period as the interim fuel refund and results in no effect on net income.  See Note 2 to the financial statements in the Form 10-K for discussion of the interim fuel refund; and

•the issuance of $500 million of 5.25% Series mortgage bonds in February 2025.

The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including the Orange County Advanced Power Station project and the Legend Power Station project.

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