Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 1049

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 3
Chunk 1049
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 relation to the TSR of the companies in the Philadelphia Utility Index.  The Talent and Compensation Committee identified the Philadelphia Utility Index as the appropriate industry peer group for determining Relative TSR because the companies included in this index, in the aggregate, are viewed as comparable to the Company in terms of business and scale.

Environmental Stewardship 

The Environmental Stewardship measure consists of two components designed to capture the key dimensions of Entergy's response to climate change:

•A Climate Resilience component, sub-weighted at 60%, which is focused on reduction in storm restoration costs attributable to completed infrastructure improvement investments.

•A Carbon-Free Generation component, sub-weighted at 40%, which is focused on generation of electricity from carbon emission-free sources as compared to the Company's projection for the 2024–2026 performance period.

A Carbon Capture Modifier applies to the Carbon-Free Generation component in the range of -9% to +9% based on the Talent and Compensation Committee's assessment of achievement (or lack of achievement) of specific CCS objectives.

The Environmental Stewardship measure was incorporated as a performance measure in the 2024–2026 PUP because:

•It measures progress towards quantitative goals that align with desired customer and owner outcomes for clean energy, reliable operation and reduced storm restoration costs.

•It aligns with interests of regulators to see positive outcomes from capital investments in managing both transition and physical risk.

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In January 2024, the Talent and Compensation Committee established the following goals for the 2024–2026 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 QuartileEnvironmental Stewardship20%Climate Resilience (60%)(3)2024: Minimum –  0%; Target –  2%; Maximum – 7%2025: Minimum –  2%; Target –  3%; Maximum – 8%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