Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 132

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 132
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, 2024 primarily due to the following activity:

•money pool activity;

•an increase of $131.5 million in non-nuclear generation construction expenditures primarily due to higher spending on the Legend Power Station project and the Orange County Advanced Power Station project;

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

•an increase of $52 million in transmission construction expenditures primarily due to increased spending on various transmission projects in 2025 and higher capital expenditures as a result of increased development in Entergy Texas’s service area; and

•a decrease of $17.9 million in information technology capital expenditures primarily due to decreased spending on various technology projects in 2025.

Increases in Entergy Texas’s receivable from the money pool are a use of cash flow, and Entergy Texas’s receivable from the money pool increased $36.2 million for the three months ended March 31, 2025 compared to decreasing by $267.6 million for the three months ended March 31, 2024.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities increased $481.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the issuance of $500 million of 5.25% Series mortgage bonds in February 2025, partially offset by a decrease of $12.4 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements.  See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

Capital Structure

Entergy Texas’s debt to capital ratio is shown in the following table.  The increase in the debt to capital ratio for Entergy Texas is primarily due to the net issuance of long-term debt in 2025.

March 31, 2025December 31, 2024Debt to capital54.4 %51.6 %Effect of excluding securitization bonds(1.6 %)(1.7 %)Debt to capital, excluding securitization bonds (non-GAAP) (a)52.8