Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 939

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 939
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 with these items.

The volume/weather variance is primarily due to a decrease in industrial and commercial usage.  The decrease in industrial usage is primarily due to a decrease in demand from large industrial customers, primarily in the industrial gases industry.

Storm restoration carrying costs represent the equity component of storm restoration carrying costs, recorded in fourth quarter 2023, recognized as part of the City Council’s approval of the Hurricane Ida storm cost certification report in December 2023.  See Note 2 to the financial statements for further discussion of the storm cost certification.

The retail electric price variance is primarily due to increases in formula rate plan rates effective September 2023 and September 2024, each in accordance with the terms of the 2023 and 2024 formula rate plan filings.  See Note 2 to the financial statements for further discussion of the formula rate plan filings.

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

Total electric energy sales for Entergy New Orleans for the years ended December 31, 2024 and 2023 are as follows:

20242023% Change(GWh)Residential2,341 2,364 (1)Commercial2,094 2,126 (2)Industrial369 423 (13)Governmental793 783 1   Total retail  5,597 5,696 (2)Sales for resale:  Non-associated companies2,123 2,818 (25)Total7,720 8,514 (9)

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

Other Income Statement Variances

Other operation and maintenance expenses increased primarily due to:

•an increase of $4.1 million in bad debt expense;

•an increase of $2.6 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

•an increase of $2.5 million in energy efficiency expenses primarily due to higher energy efficiency costs and the timing of recovery from customers.

The increase was partially offset by a decrease of $5.3 million in power delivery expenses primarily due to a lower scope of work performed in 2024 as compared to 2023.

Taxes other than income taxes decreased primarily due to a decrease in local franchise taxes as a result of lower retail revenues in 2024 as compared to 202