Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 184

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 4
Chunk 184
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 The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the wood products, petrochemicals, petroleum refining, and transportation industries, and an increase in demand from co-generation customers.

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

Total electric energy sales for Entergy Texas for the six months ended June 30, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential3,300 3,089 7 Commercial2,389 2,317 3 Industrial4,781 4,458 7 Governmental128 131 (2)  Total retail  10,598 9,995 6 Sales for resale:  Non-associated companies144 346 (58)Total10,742 10,341 4 

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

Other Income Statement Variances

Second Quarter 2025 Compared to Second Quarter 2024

Purchased power includes an increase in second quarter 2025 of $20 million in costs related to the procurement of capacity through MISO’s annual planning resource auction, including the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months.  Although Entergy Texas does not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates, in June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually.  Entergy Texas plans to file for such a rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Depreciation and amortization expenses decreased primarily due to the recognition of $13.8 million in depreciation expense in second 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