Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 262

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 262
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 January 2024.  The legislation allows Entergy Mississippi to make interim rate adjustments to recover the non-fuel related annual ownership cost of certain facilities that directly or indirectly provide service to customers who own certain data processing center projects as specified in the legislation.  Entergy Mississippi filed the first of its annual interim facilities rate adjustment reports in May 2024 to recover approximately $8.7 million of these costs over a six-month period with rates effective beginning in July 2024.  Entergy Mississippi filed its second interim facilities rate adjustment report in November 2024 to recover approximately $46.7 million of these costs over a 12-month period with rates effective beginning in January 2025.  In February 2025, Entergy Mississippi filed a true-up interim facilities rate adjustment report to the initial annual interim facilities rate adjustment report filed in May 2024, reflecting the recovery of an 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

additional approximately $1.0 million of costs over a 12-month period with rates effective with the first billing cycle of April 2025.Filings with the City Council (Entergy New Orleans)Retail Rates2025 Formula Rate Plan FilingIn April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing.  The 2024 evaluation report produced an electric earned return on equity of 10.98% compared to the authorized return on equity of 9.35%.  Without adjustments, this would result in a decrease in electric rates of $13.8 million.  The decrease in electric rates is driven by the realignment of regulatory liabilities into the formula from a separate rate mechanism, partially offset by the cost of known and measurable electric capital additions.  The filing also commences the previously authorized recovery of certain regulatory costs and requests a revenue-neutral recovery to offset a proposed reduction in bill payment late fees.  Taking into account these proposed adjustments, the filing presents a decrease in authorized electric revenues of $8.6 million.  The City Council’s advisors issued their report in July 2025 seeking a reduction in Entergy New Orleans’s requested electric formula rate plan revenues of approximately $7.2 million due to certain proposed cost realignments and disallowances, of which $4.1 million is associated with Entergy New Orleans’s proposed implementation, on a revenue neutral basis, of a proposed reduction in customer late fees.  The