Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 14

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 14
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 conclusion and recommendations, noting the Cypress Solar facility is a reasonable project and recommending the APSC approve the project under certain conditions.  The Arkansas Attorney General also filed testimony supporting the project but seeking additional information.  Entergy Arkansas proposes to recover the costs of constructing the Arkansas Cypress Solar facility through the Generating Arkansas Jobs Act rider, which was approved by the APSC in October 2025.  Subject to receipt of required regulatory approval and other conditions, the facility is expected to be in service by the end of 2028.

State and Local Rate Regulation and Fuel-Cost Recovery

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery.  The following are updates to that discussion.

Retail Rates

2025 Formula Rate Plan Filing 

In July 2025, Entergy Arkansas filed with the APSC its 2025 formula rate plan filing to set its formula rate for the 2026 calendar year.   The filing contained an evaluation of Entergy Arkansas’s earnings for the 2026 

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

projected year and a netting adjustment for the 2024 historical year.   The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2026 projected year was 8.45% resulting in a revenue deficiency of $68.9 million.   The earned rate of return on common equity for the 2024 historical year was 7.71% resulting in a $48.8 million netting adjustment.  The total proposed revenue change for the 2026 projected year and 2024 historical year netting adjustment is $117.7 million.  By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint.   Because Entergy Arkansas’s revenue requirement in this filing exceeded the constraint, the resulting increase was limited to $92.3 million.  The APSC general staff filed their errors and objections in October 2025, proposing an adjustment to the coupon rate for the projected long-term debt issuance in 2026 and an update to annual filing year revenues that increases the constraint to $93.9 million.  Entergy Arkansas filed its rebuttal in