Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 679

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 679
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 funds are not assigned a level in the fair value table.  The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the years ended December 31, 2024, 2023, and 2022: 202420232022 (In Millions)Balance as of January 1,$21 $19 $4 Issuances of financial transmission rights534216Gains included as a regulatory liability/asset110 84 175 Settlements(164)(124)(176)Balance as of December 31,$20 $21 $19 The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO.The following table sets forth an analysis of each of the types of unobservable inputs impacting the fair value of items classified as Level 3 within the fair value hierarchy, and the sensitivity to changes to those inputs:Significant Unobservable InputTransaction TypePositionChange to InputEffect on Fair Value    Unit contingent discountElectricity swapsSellIncrease (Decrease)Decrease (Increase)The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2024 and December 31, 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

2023.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.Entergy Arkansas2024Level 1Level 2Level 3Total(In Millions)Assets:Temporary cash investments$3.4 $— $— $3.4 Decommissioning trust funds (a):Equity securities12.9 — — 12.9 Debt securities259.9 319.1 — 579.0 Common trusts (b)1,012.5 Financial transmission rights— — 8.5 8.5 $276.2 $319.1 $8.5 $1,616.3 2023Level 1Level 2Level 3Total(In Millions)Assets:Temporary cash investments