Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 13

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 13
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ergy’s customer load.  They are not designated as hedging instruments.  Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement.  Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues.  The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights.  The total volume of financial transmission rights outstanding as of December 31, 2024 is 59,318 GWh for Entergy, including 13,991 GWh for Entergy Arkansas, 24,896 GWh for Entergy Louisiana, 9,297 GWh for Entergy Mississippi, 2,460 GWh for Entergy New Orleans, and 8,579 GWh for Entergy Texas.  Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO.  Credit support for financial transmission rights held by Entergy’s non-utility operations business is covered by cash.  No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of December 31, 2024 and 2023.  Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas as of December 31, 2024 and for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas as of December 31, 2023.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of December 31, 2024 and 2023 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.InstrumentBalance Sheet LocationGross Fair Value (a)Offsetting Position (b)Net Fair Value (c) (d)(In Millions)2024Assets:Natural gas swaps and optionsPrepayments and other$2$—$2Financial transmission rightsPrepayments and other$21($1)$20Liabilities: