Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 258

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 258
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2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana agreement in principle and the subsequently filed global stipulated settlement agreement.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding.  See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and the resolution of the 2016-2018 IRS audit.

Operating Revenues

Utility

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:

Amount(In Millions)2024 operating revenues$9,084 Fuel, rider, and other revenues that do not significantly affect net income423 Volume/weather207 Retail electric price154 Retail one-time bill credit92 Purchased power agreement termination proceeds15 Effect of sale of natural gas distribution businesses(32)2025 operating revenues$9,943 

The Utility operating companies’ 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 volume/weather variance is primarily due to an increase in industrial usage.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals, chlor-alkali, petroleum refining, and technology industries.

The retail electric price variance is primarily due to:

•an increase in Entergy Arkansas’s formula rate plan rates effective January 2025;

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

•increases in Entergy Mississippi’s formula rate plan rates effective April 2024 and July 2024 and an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2025; and

•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, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

The retail one-time bill credit variance