Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 201

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 4
Chunk 201
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 the effects of  lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy New Orleans effective with the June 2024 service month per the settlement agreement with the City Council and the lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy Louisiana effective with the September 2024 service month per the settlement with the LPSC.  The decrease was partially offset by higher operating revenues resulting from changes in rate base.  See Note 2 to the financial statements in the Form 10-K for discussion of the settlements with the City Council and the LPSC.

Income Taxes

The effective income tax rates were 19.4% for the second quarter 2025 and 20.3% for the six months ended June 30, 2025.  The differences in the effective income tax rates for the second quarter 2025 and the six months ended June 30, 2025 versus the federal statutory rate of 21% were primarily due to certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes.

The effective income tax rates were 23.2% for the second quarter 2024 and 21.7% for the six months ended June 30, 2024.  The differences in the effective income tax rates for the second quarter 2024 and the six months 

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Table of ContentsSystem Energy Resources, Inc.Management’s Financial Discussion and Analysis

ended June 30, 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” herein and in the Form 10-K for discussion of income tax legislation and regulation.  See Note 10 to the financial statements herein for discussion of the nuclear production tax credits recorded in second quarter 2025.

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning of period$28,908 $60 Net cash provided by (used in):Operating activities131,501 27,420 Investing activities