Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 254

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 254
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 2024;

•the expensing of $11 million at Entergy Louisiana 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 Entergy Louisiana’s Bayou Power Station project;

•an increase of $8 million in non-nuclear generation expenses primarily due to a higher scope of work performed in 2025 as compared to 2024; and

•an increase of $5 million in bad debt expense.

The increase was partially offset by contract costs of $15 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives, and a $13 million gain, recorded in third quarter 2025, resulting from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution 

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

businesses on July 1, 2025, which included the derecognition of $7 million of goodwill attributed to the businesses sold.  See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.

Asset write-offs, impairments, and related charges includes a $13 million charge, recorded in third quarter 2025 at Entergy New Orleans, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered.  See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024.

Depreciation and amortization expenses increased primarily due to additions to plant in service and increases in nuclear depreciation rates at Entergy Louisiana effective September 2024 and September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024.  See Note 2 to the financial statements in the Form 10-K for