Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 121

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 121
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 increased primarily due to higher carrying costs related to higher regulatory liability balances and the issuances of $65 million of 6.41% Series mortgage bonds, $50 million of 6.54% Series mortgage bonds, and $35 million of 6.25% Series mortgage bonds, each in May 2024, partially offset by the repayment of an $85 million unsecured term loan in June 2024.

Income Taxes

The effective income tax rate was 23.6% for the first quarter 2025.  The difference in the effective income tax rate for the first quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rate was 28.3% for the first quarter 2024.  The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes.

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Table of ContentsEntergy New Orleans, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

Sale of Natural Gas Distribution Business

See Note 13 to the financial statements herein and the “Held For Sale - Natural Gas Distribution Businesses” section in Note 14 to the financial statements in the Form 10-K for discussion of the planned sale of Entergy New Orleans’s gas distribution business.

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning of period$31,777 $26 Net cash provided by (used in):Operating activities2,589 9,139 Investing activities(21,851)(36,893)Financing activities1,411 27,754 Net decrease in cash and cash equivalents(17,851)— Cash and cash equivalents at end of period$13,926 $26 

Operating Activities

Net cash flow provided by operating activities decreased $6.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to lower collections from customers