Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 154

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 7
Chunk 154
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 recovery mechanism, effective September 2024, partially offset by decreases in formula rate plan revenues due to interim formula rate plan rate adjustments effective January 2025 and March 2025;

•increases in Entergy Mississippi’s formula rate plan rates effective April 2024 and July 2024 and an increase in the interim facilities rate adjustment revenues effective January 2025; and

•the implementation of the distribution cost recovery factor rider effective with the first billing cycle in October 2024 and an increase in the distribution cost recovery factor rider effective in late December 2024, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

2

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

Total electric energy sales for Utility for the three months ended March 31, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential8,784 7,758 13 Commercial6,243 6,223 — Industrial13,833 12,661 9 Governmental560 572 (2)Total retail29,420 27,214 8 Sales for resale1,634 3,958 (59)Total31,054 31,172 — 

See Note 12 to the financial statements herein for additional discussion of operating revenues.

Other Income Statement Items

Utility

Other operation and maintenance expenses decreased from $681 million for the first quarter 2024 to $662 million for the first quarter 2025 primarily due to contract costs of $12 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives and a decrease of $8 million in compensation and benefits costs primarily due to a higher revision to estimated incentive-based compensation expense in first quarter 2025 as compared to first quarter 2024.

Asset write-offs, impairments, and related charges (credits) includes a $132 million charge to reflect the write-off, at Entergy Arkansas, of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates at Ent