Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 268

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 268
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 effective January 2025.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2024 formula rate plan filings, including the interim facilities rate adjustment.

The volume/weather variance is primarily due to an increase in industrial usage and the effect of more favorable weather on residential sales.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily from new customers in the technology industry, and an increase in demand from small industrial customers.

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

Total electric energy sales for Entergy Mississippi for the three months ended March 31, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential1,311 1,186 11 Commercial1,002 963 4 Industrial526 494 6 Governmental89 87 2   Total retail  2,928 2,730 7 Sales for resale:  Non-associated companies694 1,988 (65)Total3,622 4,718 (23)

See Note 12 to the financial statements herein for additional discussion of Entergy Mississippi’s operating revenues.

Other Income Statement Variances

Other operation and maintenance expenses increased primarily due to an increase of $4.2 million in storm damage provisions and an increase of $3.5 million in power delivery expenses primarily due to higher vegetation maintenance costs.  See Note 2 to the financial statements in the Form 10-K for discussion of Entergy Mississippi’s storm damage mitigation and restoration rider.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Other regulatory charges (credits) – net includes a regulatory charge of $21 million, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance.

Other income increased primarily due to an increase in the amortization of tax gross ups on customer advances for construction and an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025.

Interest expense increased primarily due to carrying costs on customer advances for construction and the issuance of $300 million of 5.85% Series mortgage bonds in May 2024.

Income Taxes

The effective income tax rates were 24.1% for the first quarter 2025 and 22.2% for the first