Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 473

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 473
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 to Third Quarter 2024

Net income increased $11.7 million primarily due to higher retail electric price and higher volume/weather, partially offset by higher other operation and maintenance expenses, higher purchased power costs related to the procurement of capacity through MISO’s annual planning resource auction, higher interest expense, and higher taxes other than income taxes.

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

Net income increased $33.1 million primarily due to higher retail electric price, higher volume/weather, and higher other income, partially offset by higher purchased power costs related to the procurement of capacity through MISO’s annual planning resource auction, higher taxes other than income taxes, higher interest expense, and higher depreciation and amortization expenses.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

Following is an analysis of the change in operating revenues comparing the third quarter 2025 to the third quarter 2024:

Amount(In Millions)2024 operating revenues$597.0 Fuel, rider, and other revenues that do not significantly affect net income5.4 Retail electric price23.3 Volume/weather14.6 2025 operating revenues$640.3 

Entergy Texas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.  “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The retail electric price variance is primarily due to the implementation of the distribution cost recovery factor rider effective with the first billing cycle in October 2024 and increases in the distribution cost recovery factor rider effective in December 2024 and June 2025.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the distribution cost recovery factor rider filings.

The volume/weather variance is primarily due to an increase in industrial and residential usage.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the transportation, industrial gases, petroleum refining, and wood products industries, and an increase in demand 

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

from small industrial customers, partially offset by a decrease in demand from co-generation customers.  The increase in residential usage is primarily due to an increase in customers.

Total electric energy