Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 516

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 516
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 tariff, a tariff governing the sales of energy and capacity among the Utility operating companies.  The requisite approvals for the PPA were issued by the FERC in November 2024 and the MPSC in February 2025.  The divestiture is effective as of January 1, 2025.System Energy Regulatory Liability for Pending ComplaintsPrior to June 2022, System Energy recorded a provision and associated liability of $37 million for elements of the complaints against System Energy.  In June 2022, as discussed in “System Energy Settlement with the MPSC” above, System Energy recorded a regulatory charge of $551 million ($413 million net-of-tax), increasing System Energy’s regulatory liability to $588 million, which consisted of $235 million for the settlement with the MPSC and $353 million for potential future refunds to Entergy Arkansas, Entergy New Orleans, and Entergy Louisiana.  System Energy paid the black box refund of $235 million to Entergy Mississippi in November 2022.  As discussed above in “Grand Gulf Sale-leaseback Renewal Complaint and Uncertain Tax Position Rate Base Issue,” in January 2023 System Energy paid refunds of $103.5 million as a result of the FERC’s order in December 2022 in that proceeding and recouped $40.5 million of the $103.5 million from Entergy Louisiana and Entergy New Orleans in October 2023.  In addition, as discussed above in “Unit Power Sales Agreement Complaint,” a black box refund of $18 million was made by System Energy in 2023 in connection with a partial settlement in that proceeding.  Based on analysis of the then-pending complaints against System Energy and potential future settlement negotiations with the LPSC and the City Council, in third quarter 2023, System Energy recorded a regulatory charge of $40 million to increase System Energy’s regulatory liability related to complaints against System Energy.  In December 2023 the $93 million black box refund to Entergy Arkansas was reclassified from the regulatory liability to accounts payable - associated companies on System Energy’s balance sheet.  System Energy paid the remaining black box refunds of $93 million to Entergy Arkansas, $98 million to Entergy New Orleans, and $80 million to Entergy Louisiana in 2024.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Unit Power Sales AgreementSystem Energy Formula Rate Annual