Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 938

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 938
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 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. 

396

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 income(28.3)Volume/weather(5.5)Storm restoration carrying costs(5.2)Retail electric price5.7 2024 operating revenues$810.6 

Entergy New Orleans’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.  “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated