Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 832

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 832
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,476 (3)

See Note 19 to the financial statements for additional discussion of Entergy Arkansas’s operating revenues.

Other Income Statement Variances

Other operation and maintenance expenses increased primarily due to:

•an increase of $11.2 million in energy efficiency expenses primarily due to the timing of recovery from customers;

•the effects of recording a final judgment in first quarter 2023 to resolve claims in the ANO damages case against the DOE related to spent nuclear fuel storage costs.  The damages awarded included the reimbursement of approximately $10.3 million of spent nuclear fuel storage costs previously recorded as other operation and maintenance expenses.  See Note 8 to the financial statements for discussion of the spent nuclear fuel litigation; and

•an increase of $7.2 million in compensation and benefits costs primarily due to higher healthcare claims activity, including lower prescription drug rebates in 2024 as compared to 2023, and higher incentive-based accruals in 2024 as compared to 2023.

The increase was partially offset by:

•a decrease of $11.3 million in nuclear generation expenses primarily due to lower nuclear labor costs;

•a decrease of $8.8 million in power delivery expenses primarily due to lower vegetation maintenance costs; and

•a decrease of $4.4 million in non-nuclear generation expenses primarily due to a lower scope of work during plant outages performed in 2024 as compared to 2023.

Asset write-offs includes:

•a $131.8 million charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024.  See Note 2 to the financial statements for discussion of the opportunity sales proceeding; and

•the effects of Entergy Arkansas forgoing recovery of identified costs resulting from the 2013 ANO stator incident.  In third quarter 2023, Entergy Arkansas recorded write-offs of its regulatory asset for deferred 

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

fuel of $68.9 million and the undepreciated balance of $9.5 million in capital costs related to the ANO stator incident.  See Note 8 to the financial statements for further discussion of the ANO stator incident and the approved motion to forgo recovery.

Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Walnut Bend Solar facility, which was placed in service