Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 155

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 155
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 companies5,045 4,322 17   Non-associated companies652 1,307 (50)Total53,381 51,573 4 

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

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Other operation and maintenance expenses increased primarily due to:

•an increase of $11.8 million in power delivery expenses primarily due to a higher scope of work performed in 2025 as compared to 2024 and higher vegetation maintenance costs;

•the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and instead to evaluate an alternative transmission solution.  See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” below for discussion of the Bayou Power Station project;

•an increase of $5.4 million in compensation and benefits costs primarily due to higher incentive-based accruals in 2025 as compared to 2024;

•an increase of $4.8 million in energy efficiency expenses primarily due to higher energy efficiency costs;

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Table of ContentsEntergy Louisiana, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

•an increase of $3.5 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024; and

•several individually insignificant items.

The increase was partially offset by a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025, and contract costs of $5.5 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives.  See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024.

Depreciation and amortization expenses increased primarily due to additions to plant in service and increases in nuclear depreciation rates effective September 2024 and September 2025 in accordance with the global