Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 223

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 223
---
 difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income decreased slightly primarily due to changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in 2024, and a decrease of $9 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitization.  The decrease was substantially offset by:

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Orange County Advanced Power Station project and the Legend Power Station project, each at Entergy Texas;

•an increase of $24 million in the amortization of tax gross ups on customer advances for construction;

•a $17 million true-up of Entergy Louisiana’s MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025.  See Note 2 to the financial statements herein for discussion of the 2024 formula rate plan filing; and

•an increase of $17 million in interest earned on money pool investments.

Interest expense increased primarily due to:

•the issuances by Entergy Arkansas of $400 million of 5.75% Series mortgage bonds and $400 million of 5.45% Series mortgage bonds, each in May 2024;

•the issuance by Entergy Louisiana of $700 million of 5.15% Series mortgage bonds in August 2024;

8

Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

•the issuance by Entergy Louisiana of $750 million of 5.80% Series mortgage bonds in January 2025;

•the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025;

•the issuance by Entergy Texas of $350 million of 5.55% Series mortgage bonds in August 2024;

•the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025;

•the issuance by System Energy of $300 million of 5.30% Series mortgage bonds in December 2024; and

•carrying costs of $22 million in 2025 on customer advances for construction.

The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including