Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 280

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 280
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197,622 176,267 Capital contributions from noncontrolling interest24,702 — 24,702 Balance at December 31, 2022$3,347 $2,037,190 $2,040,537 Net income (loss)(10,302)192,271 181,969 Common equity distributions— (40,000)(40,000)Capital contributions from noncontrolling interest25,708 — 25,708 Balance at December 31, 2023$18,753 $2,189,461 $2,208,214 Net income (loss)(10,551)255,958 245,407 Common equity distributions— (44,633)(44,633)Balance at December 31, 2024$8,202 $2,400,786 $2,408,988 See Notes to Financial Statements. 

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

2024 Compared to 2023

Net Income

Net income decreased $213.1 million primarily due to a $198.4 million reduction in income tax expense in 2023 as a result of the resolution of the 2016-2018 IRS audit, partially offset by a $60 million regulatory charge ($43.8 million net-of-tax) to reflect credits expected to be provided to customers as a result of the resolution of the 2016-2018 IRS audit, and a $78.5 million ($57.4 million net-of-tax) regulatory charge, recorded in first quarter 2024, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit.  Also contributing to the decrease were higher interest expense, higher depreciation and amortization expenses, and higher other operation and maintenance expenses.  See Note 3 to the financial statements for discussion of the April 2024 settlement in principle and discussion of the resolution of the 2016-2018 IRS audit.

Operating Revenues

Following is an analysis of the change in operating revenues comparing 2024 to 2023:

 Amount (In Millions)2023 operating revenues$843.9 Fuel, rider, and other revenues that do not significantly affect net