Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 582

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 582
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21,599 Total Noncontrolling Interest$15,168 $21,599 (a)AR Searcy Partnership, LLC is a tax equity partnership between Entergy Arkansas and a tax equity investor which was formed to acquire and own the Searcy Solar facility.  Entergy Arkansas, as the managing member, consolidates AR Searcy Partnership, LLC and the tax equity investor’s interest is presented as noncontrolling interest in the consolidated financial statements for Entergy Arkansas and Entergy.  Entergy Arkansas uses the HLBV method of accounting for income or loss allocation to the tax equity investor’s 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

noncontrolling interest.  See Note 1 to the financial statements for further discussion on the presentation of the tax equity investor’s noncontrolling interest and the HLBV method of accounting.The dollar value of noncontrolling interests for Entergy Louisiana as of December 31, 2024 and 2023 are presented below.20242023(In Thousands)Entergy Louisiana Noncontrolling InterestsRestoration Law Trust I (a)$28,826 $30,488 Restoration Law Trust II (b)13,880 14,619 Total Noncontrolling Interests$42,706 $45,107 (a)Restoration Law Trust I (the storm trust I) was established in 2022 as part of the Act 293 securitization of Entergy Louisiana’s Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri restoration costs, as well as to establish a storm reserve to fund a portion of Hurricane Ida storm restoration costs.  The storm trust I holds preferred membership interests issued by Entergy Finance Company, and Entergy Finance Company is required to make annual distributions (dividends) on the preferred membership interests.  These annual dividends paid on the Entergy Finance Company preferred membership interests are distributed 1% to the LURC and 99% to Entergy Louisiana.  Entergy Louisiana, as the primary beneficiary, consolidates the storm trust I and the LURC’s 1% beneficial interest is presented as noncontrolling interest in the consolidated financial statements for Entergy Louisiana and Entergy.  See Note 2 to the financial statements for a discussion of the Entergy Louisiana May 2022 storm cost securitization.(b)Restoration Law Trust II (the storm trust II) was established in 2023 as