Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 447

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 447
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30, 2024 primarily due to:

•the issuance of $600 million of 5.80% Series mortgage bonds in March 2025;

•an increase of $93.8 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements;

•the repayment, prior to maturity, of $100 million of 3.75% Series mortgage bonds in June 2024;

•money pool activity;

•a capital contribution of $62.5 million received from Entergy Corporation in February 2025 in order to maintain Entergy Mississippi’s capital structure; and

•$44.6 million in common equity distributions paid in 2024 in order to maintain Entergy Mississippi’s capital structure.

The increase was partially offset by the issuance of $300 million of 5.85% Series mortgage bonds in May 2024.

Decreases in Entergy Mississippi’s payable to the money pool are a use of cash flow, and Entergy Mississippi’s payable to the money pool decreased by $73.8 million for the nine months ended September 30, 2024.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

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

Capital Structure

Entergy Mississippi’s debt to capital ratio is shown in the following table.  The increase in the debt to capital ratio for Entergy Mississippi is primarily due to net issuance of long-term debt in 2025.

September 30, 2025December 31, 2024Debt to capital52.8 %50.4%Effect of subtracting cash(2.9%)(1.6%)Net debt to net capital (non-GAAP)49.9%48.8%

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion.  Capital consists of debt and equity.  Net capital consists of capital less cash and cash equivalents.  Entergy Mississippi uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition.  The net debt to net capital ratio is a non-GAAP measure.  Entergy Mississippi uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful