Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 16

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 16
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 to utility plant items, partially offset by the accrual for state income taxes.

The effective income tax rate was 17.6% for the first quarter 2024.  The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes and the amortization of deficient state accumulated deferred income taxes as a result of tax rate changes.

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

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

Sale of Natural Gas Distribution Business

See Note 13 to the financial statements herein and the “Held For Sale - Natural Gas Distribution Businesses” section in Note 14 to the financial statements in the Form 10-K discussion of the planned sale of Entergy Louisiana’s gas distribution business.

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning of period$327,102 $2,772 Net cash provided by (used in):Operating activities273,135 304,836 Investing activities(696,217)(483,943)Financing activities488,225 949,534 Net increase in cash and cash equivalents65,143 770,427 Cash and cash equivalents at end of period$392,245 $773,199 

Operating Activities

Net cash flow provided by operating activities decreased $31.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to higher fuel and purchased power payments and the timing of recovery of fuel and purchased power costs, the timing of payments to vendors, and an increase of $61.1 million in interest paid.  The decrease was partially offset by higher collections from customers.  See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery.

Investing Activities

Net cash flow used in investing activities increased $212