Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 8

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 8
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 City Council and the LPSC, respectively, seeking approval for the proposed transactions.  The applications requested a decision by June 2024.In February 2024 the City Council adopted a procedural schedule, and in September 2024 the hearing officer certified the record of the proceeding.  In December 2024 the City Council found the proposed transaction in the public interest and approved it, subject to certain conditions.  The key conditions include:•Entergy New Orleans will not seek recovery of certain assets allocated to its gas business that will not transfer to the buyer through the sale.  These assets had a net book value as of December 31, 2024 of approximately $19 million.•Entergy New Orleans will be limited to recovering $19 million of transaction and cooperation costs associated with the sale of the gas business.•Entergy New Orleans will share with customers 50% of the net proceeds from the transaction.  Net proceeds from the transaction will be determined by the sales price, less the sum of: (1) the net book value of the assets sold and liabilities assumed by the buyer, (2) the net book value of the assets of the gas business that will not be included in the sale and for which Entergy New Orleans will not seek to recover from customers, 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

and (3) the transaction and cooperation costs associated with the sale, limited to $19 million.  Entergy New Orleans will recognize a regulatory liability for such sharing with customers, and will amortize it into customer rates ratably over three years.In July 2024 the LPSC staff issued a report recommending LPSC approval of the application of Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate, formerly Delta States Utilities LA, LLC) and Entergy Louisiana and the transaction described therein as being in the public interest and proposing certain conditions.  In August 2024 the LPSC issued an order accepting the LPSC staff’s report and recommendation.The purchase and sale agreements may be terminated by any party if the Second Phase does not start within 15 months of October 28, 2023, or within 18 months if the only remaining conditions to starting the Second Phase are obtaining the regulatory approvals.  The consummation of each of the transactions is subject to satisfaction of certain customary closing conditions, including the receipt of the regulatory approvals, clearance under the Hart-Scott Rodino Act, and the concurrent closing of the other