Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 216

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 216
---
 and maintenance expenses increased from $686 million for the second quarter 2024 to $713 million for the second quarter 2025 primarily due to:

•an increase of $12 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;

•an increase of $10 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $9 million in bad debt expense;

•an increase of $5 million in storm damage provisions; and

•several individually insignificant items.

The increase was partially offset by contract costs of $12 million, in second quarter 2024, related to operational performance, customer service, and organizational health initiatives and a decrease of $7 million in nuclear generation expenses primarily due to a lower scope of work performed in 2025 as compared to 2024.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates at Entergy Louisiana effective September 2024 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024.  The increase was partially offset by the recognition of $14 million in depreciation expense in second quarter 2024 at Entergy Texas 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 

3

Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

Entergy Louisiana global stipulated settlement agreement.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2022 base rate case at Entergy Texas.

Other regulatory charges (credits) - net includes regulatory charges of $150 million, recorded by Entergy Louisiana in second quarter 2024, to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023.  See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana agreement in principle and