Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 443

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 443
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 the LPSC (Entergy Louisiana) - Retail Rates - Electric - Formula Rate Plan Global Settlement”, a global settlement resolving the outstanding issues related to the 2017 formula rate plan filing was reached in October 2023 and approved by the LPSC in November 2023.System EnergyIn a filing made with the FERC in March 2018, System Energy proposed revisions to the Unit Power Sales Agreement to reflect the effects of the Tax Act.  In the filing System Energy proposed to return identified quantities of unprotected excess accumulated deferred income taxes to its customers by the end of 2018.  In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures.  Settlement discussions were terminated in April 2019, and a hearing was held in March 2020.  In December 2022 the FERC issued an order requiring System Energy to compute the amount of excess accumulated deferred income taxes associated with a previously uncertain decommissioning tax position with consideration for the resolution of the tax position by the IRS.  In February 2023, System Energy submitted its compliance filing.  This matter was ultimately settled as a result of System Energy’s settlements with the MPSC, the APSC, the City Council, and the LPSC.  See “Complaints Against System Energy” below for further discussion of the System Energy settlements with the MPSC, the APSC, the City Council, and the LPSC.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Fuel and purchased power cost recoveryThe Utility operating companies are allowed to recover fuel and purchased power costs through fuel mechanisms included in electric and gas rates that are recorded as fuel cost recovery revenues.  The difference between revenues collected and the current fuel and purchased power costs is generally recorded as “Deferred fuel costs” on the Utility operating companies’ financial statements.  The table below shows the amount of deferred fuel costs as of December 31, 2024 and 2023 that each Utility operating company expects to recover (or return to customers) through fuel mechanisms, subject to subsequent regulatory review. 20242023 (In Millions)Entergy Arkansas($45.2)($88.3)Entergy Louisiana (a) (b)$163.4 $192.9 Entergy Mississippi($126.3)($130.6)Entergy New Orleans (a) (b)$