Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 27

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 27
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 stipulated settlement 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.

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.

Other income increased primarily due to:

•an increase of $12 million in the amortization of tax gross ups on customer advances for construction;

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Franklin Farms Power Station Units 1 and 2 project;

•changes in decommissioning trust fund activity, including portfolio rebalancing of the River Bend decommissioning trust fund in third quarter 2024; and

•an increase of $6.9 million in interest earned on money pool investments.

The increase was partially offset by a decrease of $4.4 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations.

Interest expense increased primarily due to the issuance of $750 million of 5.80% Series mortgage bonds in January 2025 and carrying costs of $10 million in 2025 on customer advances for construction.  The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including the Franklin Farms Power Station Units 1 and 2 project.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Other operation and maintenance expenses increased primarily due to:

•an increase of $13.8 million in power delivery expenses primarily due to a higher scope of work performed in 2025 as compared to 2024 and higher vegetation maintenance costs;

•the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and instead to evaluate an alternative transmission solution.  See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” below for discussion of the Bayou Power Station project;

•an increase of $6.8 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;

•an increase of $5.6 million in transmission costs allocated