Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 200

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 200
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 portion of the costs at issue in the opportunity sales proceeding and recorded a $131.8 million ($99.1 million net-of-tax) charge to earnings in first quarter 2024.  In December 2024 the United States Court of Appeals for the Eighth Circuit affirmed the decision of the U.S. District Court for the Eastern District of Arkansas, and Entergy Arkansas filed a petition for rehearing en banc.  In January 2025 the United States Court of Appeals for the Eighth Circuit denied Entergy Arkansas’s petition.  Entergy Arkansas is evaluating a petition for certiorari with the United States Supreme Court.

Net Metering Legislation

After the passage of an Arkansas net metering law that was enacted effective July 2019, the APSC approved numerous applications allowing Entergy Arkansas customers to enter into purchase power agreements with third parties and to utilize these purchase power agreements to offset power usage by Entergy Arkansas, despite the lack of proximity between the purchase power agreement and the end-use customer.  The APSC also allowed the aggregation of accounts by net metering customers.  These decisions by the APSC created subsidies in favor of eligible net metering customers to the detriment of non-participating customers.  The level of this subsidy grew as additional net metering applications were approved by the APSC.  The size and number of customers eligible under the 2019 law present a risk of loss of load and shifting of costs to customers.

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

Another Arkansas law was enacted effective March 2023 that revised the billing arrangements for net metering facilities in order to reduce the cost shift to non-net metering customers.  The new law also imposes a new limit of 5 MW for future net metering facilities, allows utilities to recover net metering credits in the same manner as fuel, and grandfathers certain net metering facilities that are online or in process to be online by September 2024.  As of October 2024, new net metering facilities are subject to two-channel billing.  Because of the new law, in May 2023, the APSC closed its prior cost-shifting proceeding and grandfathering rulemaking relating to the prior net metering rate structure.  Under the new law, the APSC had to approve revisions to utilities’ net metering tariffs to conform to the new law no later than December 2023.  The APSC opened a new rulemaking in