Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 83

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 83
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 projects in 2025;

•a decrease of $27.4 million in transmission construction expenditures primarily due to decreased spending on various transmission projects in 2025; and

•net proceeds of $12.3 million in 2025 compared to net purchases of $11.2 million in 2024 as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle.

The decrease was partially offset by an increase of $21.3 million in distribution construction expenditures primarily due to higher capital expenditures for storm restoration in 2025 and an increase of $11.7 million in non-nuclear generation construction expenditures primarily due to a higher scope of work during plant outages performed in 2025 as compared to 2024.

See Note 14 to the financial statements in the Form 10-K for discussion of the Walnut Bend Solar facility purchase.

Financing Activities

Entergy Arkansas’s financing activities used $45.8 million of cash for the three months ended March 31, 2025 compared to providing $126.1 million of cash for the three months ended March 31, 2024 primarily due to the following activity:

•a capital contribution of approximately $275 million received from Entergy Corporation in 2024 in anticipation of upcoming expenditures, including the acquisition of the Walnut Bend Solar facility;

•the issuance of $70 million of 5.54% Series O notes by the Entergy Arkansas nuclear fuel company variable interest entity in March 2024;

•a decrease in net repayments of $53.1 million on the nuclear fuel company variable interest entity’s credit facility; and

•money pool activity.

Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $15.2 million for the three months ended March 31, 2025 compared to decreasing by $145.4 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.

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