Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1179

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 1179
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%2026: Minimum –  4%; Target –  9%; Maximum – 14%Carbon-Free Generation (40%)(4)Minimum – 128,320 TWhTarget – 133,900 TWhMaximum – 139,479 TWh

(1)Payouts for performance between achievement levels are calculated using straight-line interpolation, between minimum and target and between target and maximum, with no payouts for performance below the minimum achievement level with respect to the applicable performance measure, and payouts capped at the maximum achievement level with respect to the applicable performance measure.

(2)There is no payout if the Relative TSR falls within the lowest quartile of the peer companies in the Philadelphia Utility Index and if both Climate Resilience and Carbon-Free Generation are below the minimum achievement levels.

(3)The achievement levels established for the Climate Resilience sub-metric are based on annual restoration cost reduction impacts of projects scheduled to be completed with funding under the financial plan based on a model approved by the Talent and Compensation Committee in January 2024.

(4)The goals for the Carbon-Free Generation sub-metric are based on cumulative TWhs generated over the three year period.  The result of the Carbon-Free Generation sub-metric is subject to a carbon capture modifier in the range of -9% to +9% of the Carbon-Free Generation component based on the Talent and Compensation Committee's assessment of progress toward specific CCS objectives.

2022–2024 PUP Performance Measures, Goals and Payouts

In December 2021, the Talent and Compensation Committee chose Relative TSR and Adjusted FFO/Debt Ratio as the performance measures for the 2022–2024 PUP, with Relative TSR weighted 80% and Adjusted FFO/Debt Ratio weighted 20%.  In January 2022, the Talent and Compensation Committee established the following minimum, target and maximum performance goals for the 2022–2024 PUP performance measures:

Performance Measures(1)PUP Measure WeightGoals(2)Relative TSR80%Minimum (25%) - Bottom of 3rd Quartile Target (100%) - Median Percentile Maximum (200%) - 1st QuartileAdjusted FFO/Debt Ratio(3)20%Minimum (25%) – 14.0%Target (100%) – 15.0%Maximum (200%) – 16.5%

(1)Payouts for performance between achievement levels are calculated using straight-line interpolation.