Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 133

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 4
Chunk 133
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 Compared to Six Months Ended June 30, 2024

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $10.3 million in nuclear generation expenses primarily due to a lower scope of work performed, including during plant outages, in 2025 as compared to 2024;

•contract costs of $8.8 million in 2024 related to operational performance, customer service, and organizational health initiatives; and

•a decrease of $4.4 million in energy efficiency expenses primarily due to the timing of recovery from customers, partially offset by higher energy efficiency costs.

The decrease was partially offset by:

•an increase of $5.1 million in loss provisions;

•an increase of $4.5 million in non-nuclear power generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;

•an increase of $4.3 million in transmission costs allocated by MISO.  See Note 2 to the financial statements in the Form 10-K for discussion of the recovery of these costs; and

•several individually insignificant items.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates effective September 2024 in accordance with the global stipulated settlement 

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Table of ContentsEntergy Louisiana, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

agreement approved by the LPSC in August 2024.  See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.

Other regulatory charges (credits) - net includes regulatory charges of $150.2 million, recorded in second quarter 2024, to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023.  In addition, Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.  See Note 2 to the financial statements in the Form 10-K for discussion of the agreement in principle and the subsequently filed global stipulated settlement agreement.

Other income increased primarily due to:

•an increase in the allowance for equity funds used during construction due to higher construction work in