Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 603

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 603
---
 substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants.  The remainder of removal costs included in the decommissioning and asset retirement costs line item on the balance sheets is associated with non-nuclear power plants.These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset.  The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation.  The accretion will continue through the completion of the asset retirement activity.  The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets.  The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards.  In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates: December 31, 20242023 (In Millions)Entergy Arkansas$337.9$319.7Entergy Louisiana$323.2$262.3Entergy Mississippi$184.8$188.0Entergy New Orleans$62.5$61.1Entergy Texas$102.3$77.5System Energy$96.9$102.1As of December 31, 2024, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs.  See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

160

Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2024 and 2023 for Entergy and the Registrant Subsidiaries were as follows:EntergyEntergy ArkansasEntergy LouisianaEntergy MississippiEntergy New OrleansEntergy TexasSystem Energy (In Millions)Liabilities as of December 31, 2022$4,271.5