Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 183

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 7
Chunk 183
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 informal discovery procedures, and a challenge process.  In April 2025, pursuant to such protocols, the City Council filed with the FERC a formal challenge relating to Entergy Services’ inclusion and allocation of net operating loss carryforward accumulated deferred income taxes in the MSS-4 replacement tariff rates charged to Entergy New Orleans’s monthly bills for calendar year 2023.  Entergy Services plans to file a response to the formal challenge by the May 2025 deadline.Complaints Against System EnergySee Note 2 to the financial statements in the Form 10-K for information regarding pending complaints against System Energy and the settlements approved by the FERC that resolved all significant aspects of these complaints.  The following is an update to that discussion.Grand Gulf Sale-leaseback Renewal Complaint and Uncertain Tax Position Rate Base IssueAs discussed in the Form 10-K, in February 2023, System Energy submitted a tariff compliance filing with the FERC to clarify that, consistent with the releases provided in the June 2022 MPSC settlement, Entergy Mississippi would continue to be charged for its allocation of the sale-leaseback renewal costs under the Unit Power Sales Agreement.  In March 2023 the MPSC filed a protest to System Energy’s tariff compliance filing.  The MPSC argued that the settlement did not specifically address post-settlement sale-leaseback renewal costs and that the sale-leaseback renewal costs may not be recovered under the Unit Power Sales Agreement.  In February 2025, System Energy and the MPSC resolved their dispute concerning the sale-leaseback renewal costs.  As a result, the MPSC withdrew its protest at the FERC on System Energy’s tariff compliance filing.  Entergy Mississippi will continue to pay the allocated sale-leaseback renewal costs of approximately $5.7 million annually and there are no refunds due for prior periods.  In March 2025, System Energy filed a status report with the FERC explaining that the dispute is resolved.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Storm Cost Recovery Filings with Retail RegulatorsSee Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings.  The following is an update to that discussion.Entergy LouisianaHurricane FrancineIn September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana.  The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of