Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 289

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 289
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 5.55% Series mortgage bonds in August 2024;

•carrying costs of $3.4 million, recorded in first quarter 2025, related to the interim fuel refund.  The recognition of carrying costs is effective over the same period as the interim fuel refund and results in no effect on net income.  See Note 2 to the financial statements in the Form 10-K for discussion of the interim fuel refund; and

•the issuance of $500 million of 5.25% Series mortgage bonds in February 2025.

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 the Orange County Advanced Power Station project and the Legend Power Station project.

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

Income Taxes

The effective income tax rate was 15.6% for the first quarter 2025.  The difference in the effective income tax rate for the first quarter 2025 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.

The effective income tax rate was 19.1% for the first quarter 2024.  The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning of period$184,997 $21,986 Net cash provided by (used in):Operating activities61,794 110,907 Investing activities(440,985)34,303 Financing activities492,329 10,740 Net increase in cash and cash equivalents113,138 155,950 Cash and cash equivalents at end of period$298,135 $177,