Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 14

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 14
---
Financial transmission rightsOther current liabilities($—)$1$12023Assets:   Financial transmission rightsPrepayments and other$21$—$21    Liabilities:   Natural gas swaps and optionsOther current liabilities$11 $— $11(a)Represents the gross amounts of recognized assets/liabilities(b)Represents the netting of fair value balances with the same counterparty(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $2 million as of December 31, 2024 and December 31, 2023

214

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the years ended December 31, 2024, 2023, and 2022 are as follows:InstrumentIncome Statement locationAmount of gain (loss) recorded in the income statement  (In Millions)2024  Natural gas swaps and optionsFuel, fuel-related expenses, and gas purchased for resale(a)($8)Financial transmission rightsPurchased power expense(b)$164   2023  Natural gas swaps and optionsFuel, fuel-related expenses, and gas purchased for resale(a)($54)Financial transmission rightsPurchased power expense(b)$124   2022  Natural gas swaps and optionsFuel, fuel-related expenses, and gas purchased for resale(a)$74Financial transmission rightsPurchased power expense(b)$176(a)Due to regulatory treatment, the natural gas swaps and options are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps and options are settled are recovered or refunded through fuel cost recovery mechanisms.(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

215

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The