Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 234

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 234
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 planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses.  The following are updates to that discussion.Natural Gas Distribution BusinessesOn October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP.  Under the purchase and sale agreements, Entergy New Orleans has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of Orleans, Louisiana, and Entergy Louisiana has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of East Baton Rouge, Louisiana.  The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy Louisiana and Entergy New Orleans.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively.  In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).The transactions have two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions are satisfied or, where permissible, waived for both transactions.  As described above, the transactions have received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.Under the purchase and sale agreements, the closing of the transactions is not required to occur earlier than six months following the initiation of the Second Phase; however, the parties may agree to close prior to that date.  The purchase and sale agreements may be terminated by either party in the event the closing has not occurred prior to October 28, 2025.  Neither transaction is subject to a financing condition for the applicable buyer.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

As of March 31, 2025 and December 31, 2024, the Entergy Louisiana and Entergy New Orleans natural gas distribution