Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 304

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 304
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(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $6 million as of June 30, 2025 and $2 million as of December 31, 2024

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2025 and 2024 are as follows:InstrumentIncome StatementLocationAmount of gainrecorded in the income statement(In Millions)2025Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)$11Financial transmission rightsPurchased power expense(b)$662024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)$3Financial transmission rightsPurchased power expense(b)$47The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2025 and 2024 are as follows:InstrumentIncome StatementLocationAmount of gain (loss)recorded in the income statement(In Millions)2025Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($1)Financial transmission rightsPurchased power expense(b)$1142024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($3)Financial transmission rightsPurchased power expense(b)$100(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of June 30, 2025 and December 31, 2024 are shown in the tables