Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 375

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 375
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 requirements.  Amounts include the following types of construction and capital investments:

•investments in generation projects to modernize, decarbonize, expand, and diversify Entergy’s portfolio, as well as to support customer growth, including St. Jacques Facility, Bayou Power Station, Delta Blues Advanced Power Station, Delta Solar, Penton Solar, Orange County Advanced Power Station, Lone Star Power Station, Segno Solar, Votaw Solar, and potential construction of additional generation;

•investments in the Utility nuclear fleet;

•transmission spending to improve reliability and resilience while also supporting renewables expansion and customer growth; and

•distribution and Utility support spending to improve reliability, resilience, and customer experience through projects focused on asset renewals and enhancements and grid stability.

For the next several years, the Utility’s owned and contracted generating capacity is projected to be adequate to meet MISO reserve requirements; however, MISO has implemented changes to its resource adequacy construct that generally move from an annual to a seasonal design and that changes the way that resources are assigned capacity credit.  MISO has also recently obtained FERC approval to implement additional changes that further affect the assignment of capacity credit to resources.  As a result of these changes, there may be seasonal variations in the capacity credit afforded to the Utility operating companies’ resources by MISO, and some resource types generally may be assigned less capacity credit than they have historically.  MISO continues to pursue market design changes related to its resource adequacy construct.  The FERC recently approved a reliability-based demand curve that may have the effect of increasing the clearing prices in the MISO planning resource auction and increasing the planning reserve margin requirement for the Utility operating companies.  MISO is also pursuing changes to the market rules governing load modifying resources, which could affect the accreditation of these resources and, as a result, the capacity positions of the Utility operating companies.  These market design changes may have an effect on both the Utility operating companies’ liquidity and the capital investment needed for long-term resources.  Entergy is monitoring the evolution and application of these rules, which may require the Utility operating companies to procure additional capacity credits from the MISO market and in the longer-term may impact the incremental additional supply resources needed.  The Utility’s supply plan initiative will continue to seek to transform its generation portfolio with new generation resources.  Opportunities resulting from the supply plan initiative, including new projects or the exploration of alternative financing sources, could result in increases or decreases in the capital expenditure estimates given above.  Estimated capital