Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 44

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 44
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  See “Held for Sale - Natural Gas Distribution Businesses” in Note 14 to the financial statements for discussion of the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses.Other RevenuesEntergy’s revenues from its non-utility operations include 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 PPA.Practical Expedients and ExceptionsEntergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed.Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand.  This results in customer bills that vary each month based on an approved tariff and usage.  Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations.  These minimums typically expire after the initial term or when specified costs have been recovered.  The minimum amounts are part of each month’s bill and recognized as revenue accordingly.  Some Entergy subsidiaries in the non-utility operations business have services contracts that have fixed components and terms longer than one year.  The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues.Recovery of Fuel CostsEntergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers.  Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing.  System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf.  The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf.Taxes Imposed on Revenue-Producing TransactionsGovernmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a