Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 57

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 57
---
 mitigation and restoration rider.

Taxes other than income taxes increased primarily due to increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024 and increases in ad valorem taxes resulting from higher assessments.

143

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

Other income increased primarily due to:

•an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025, including the Vicksburg Advanced Power Station project;

•an increase of $3.7 million in interest earned on money pool investments; and

•an increase of $2.4 million in the amortization of tax gross ups on customer advances for construction.

Interest expense increased primarily due to the issuance of $600 million of 5.80% Series mortgage bonds in March 2025.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Other operation and maintenance expenses increased primarily due to:

•an increase of $21.9 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $4.8 million in bad debt expense; and

•an increase of $4.6 million in storm damage provisions.  See Note 2 to the financial statements in the Form 10-K for discussion of the storm damage mitigation and restoration rider.

The increase was partially offset by contract costs of $6 million in 2024 related to operational performance, customer service, and organizational health initiatives.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

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 $10 million in interest earned on money pool investments;

•an increase of $10 million in the amortization of tax gross ups on customer advances for construction; and

•an increase in the allowance for equity funds used during construction due to