Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 361

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 361
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 due to lower vegetation maintenance costs;

•a decrease of $15 million in nuclear generation expenses primarily due to a lower scope of work performed in 2024 as compared to 2023 and lower nuclear labor costs;

•a decrease of $12 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2024 as compared to 2023;

•a decrease of $10 million in information technology costs primarily due to enhancements made in 2023 to certain information technology systems; and

•a decrease of $9 million in customer service center support costs primarily due to lower contract costs.

4

Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

Asset write-offs, impairments, and related charges (credits) includes:

•a $132 million charge to reflect the write-off, at Entergy Arkansas, of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024.  See Note 2 to the financial statements for discussion of the Entergy Arkansas 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 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;

•a reduction in depreciation expense of $41 million, recorded in third quarter 2023 at System Energy, representing the cumulative difference in depreciation expense resulting from the depreciation rates used from March 2022 through June 2023 and the depreciation rates included in the depreciation amendment proceeding settlement filing approved by the FERC in August 2023;

•the recognition of $28 million in depreciation expense in 2024 at Entergy Texas for the 2022 base rate case relate back period, effective over six months beginning January 2024.  The recognition of depreciation expense for the relate back period was effective over the same period as collections from the relate back surcharge rider and results in no effect on net income.  See Note 2 to the financial statements for discussion of