Company: EAI
Filing Date: 2025-08-06
Form Type: S-3ASR
Source: 0001193125-25-174487
Chunk: 197

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-06
Form: S-3ASR
Chunk 197
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 amendment or modification of the UPSA; however, FERC approval would be required for termination, amendment or modification of the UPSA.

Contractual Arrangements for the Benefit of Creditors

As described elsewhere in this prospectus, substantially all of our property is subject to our mortgage, which secured approximately $950.1 million of our
outstanding first mortgage bonds as of June 30, 2025. In addition, certain of our indebtedness for borrowed money, including our outstanding first mortgage bonds, is secured by assignments of our rights under our Availability Agreement dated as
of June 21, 1974, as amended, with the Purchasing Operating Companies (the “Availability Agreement”). The New Bonds offered by this prospectus may likewise be secured by assignments of our rights under this support arrangement;
however, by the terms of the New Bonds, holders of the New Bonds will consent to our right to terminate this agreement and assignments without any further action by the holders, subject to certain conditions.

The Availability Agreement provides that we make available to the Purchasing Operating Companies capacity and energy available from our share of Grand Gulf
and that, in turn, the Purchasing Operating Companies receive such energy. Pursuant to the Availability Agreement and the assignments thereof, the Purchasing Operating Companies are individually obligated to make monthly payments or subordinated
advances to us in accordance with stated percentages in amounts that, when added to amounts received under the UPSA or otherwise, are adequate to cover all of (i) our total operating expenses for Grand Gulf, including expenses incurred in
connection with a permanent shutdown of Grand Gulf, and (ii) our interest charges, even if Grand Gulf is not in service for any reason. Since commercial operation of Grand Gulf began, payments under the UPSA to us have exceeded the amounts
payable under the Availability Agreement, and no payments under the Availability Agreement have therefore ever been required.

For information with
respect to the Availability Agreement, including the right to terminate the agreement and the assignments thereof, reference is made to “Grand Gulf-Related Agreements” under Note 8, “Commitments and Contingencies” and
“Filings with the MPSC (Entergy Mississippi) - - Grand Gulf Capacity Filing” under Note 2, “Rate and Regulatory Matters,” in each case, of the Notes to Financial Statements in the 2024 Form 10-K and the “Utility—System Energy and Related Agreements” section of Part I, Item 1 in the 2024 Form 10