Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 122

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 122
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, partially offset by the timing of payments to vendors.

Investing Activities

Net cash flow used in investing activities decreased $15.0 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to net receipts of $9.5 million from the storm reserve escrow account in 2025 compared to payments of $1.9 million to the storm reserve escrow account in 2024.

Financing Activities

Net cash flow provided by financing activities decreased $26.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the repayment, at maturity, of $78 million of 3.00% Series mortgage bonds in March 2025 and money pool activity.  The decrease was partially offset by proceeds received in March 2025 from an $80 million unsecured term loan due March 2026.

Increases in Entergy New Orleans’s payable to the money pool are a source of cash flow, and Entergy New Orleans’s payable to the money pool increased $28.1 million for the three months ended March 31, 2024.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and 

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

lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

Capital Structure

Entergy New Orleans’s debt to capital ratio is shown in the following table.

March 31, 2025December 31, 2024Debt to capital51.2 %51.5 %Effect of subtracting cash(0.5 %)(1.1 %)Net debt to net capital (non-GAAP)50.7 %50.4 %

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrowings, finance lease obligations, long-term debt, including the currently maturing portion, and the long-term payable due to an associated company.  Capital consists of debt and equity.  Net capital consists of capital less cash and cash equivalents.  Entergy New Orleans uses the debt to