Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 701

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 701
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 the sale of electric power and capacity to wholesale customers, day-ahead sales of energy in a market administered by an ISO, operation and management services fees, and amortization of a below-market power purchase agreement.Electric RevenuesEntergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions.  Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas.  Entergy’s Utility operating companies provide power to customers on demand throughout the month, measured by a meter located at the customer’s property.  Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements.  Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle.To the extent that deliveries have occurred, but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings.  The Utility operating companies calculate the estimate based upon several factors including actual metered customer usage, billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction.  The inputs are revised as needed to approximate actual usage and cost.  Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed.  Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other.Entergy may record revenue based on rates that are subject to refund.  Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared.  Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as other revenues in the table above.System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans.  System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC.  Effective January 1, 2025, Entergy Louisiana has divested all of its