Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 158

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 4
Chunk 158
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Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

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Table of ContentsEntergy Mississippi, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

Other regulatory charges (credits) – net includes:

•a regulatory charge of $21 million, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance; and

•regulatory credits of $7.3 million, recorded in second quarter 2024, to reflect the effects of the joint stipulation reached in the 2024 formula rate plan filing proceeding.  See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing.

Other income increased primarily due to an increase of $7.6 million in the amortization of tax gross ups on customer advances for construction, an increase of $6.3 million in interest earned on money pool investments, and an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025.

Interest expense increased primarily due to the issuance of $600 million of 5.80% Series mortgage bonds in March 2025, the issuance of $300 million of 5.85% Series mortgage bonds in May 2024, and carrying costs of $9 million in 2025 on customer advances for construction.

Income Taxes

The effective income tax rates were 23.7% for the second quarter 2025 and 23.8% for the six months ended June 30, 2025.  The differences in the effective income tax rates for the second quarter 2025 and the six months ended June 30, 2025 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rates were 24.1% for the second quarter 2024 and 23.6% for the six months ended June 30, 2024.  The differences in the effective income tax rates for the second quarter 2024 and the six months ended June 30, 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -