Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 408

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 1
Chunk 408
---
 effective in late December 2024.  See Note 2 to the financial statements in the Form 10-K for discussion of the distribution cost recovery factor rider filings.

The volume/weather variance is primarily due to the effect of more favorable weather on residential sales, an increase in weather-adjusted residential usage, and an increase in commercial and industrial usage.  The increase in weather-adjusted residential usage and the increase in commercial usage are primarily due to an increase in customers.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the wood products, petrochemicals, petroleum refining, and transportation industries, and an increase in demand from co-generation customers.

154

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

Total electric energy sales for Entergy Texas for the six months ended June 30, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential3,300 3,089 7 Commercial2,389 2,317 3 Industrial4,781 4,458 7 Governmental128 131 (2)  Total retail  10,598 9,995 6 Sales for resale:  Non-associated companies144 346 (58)Total10,742 10,341 4 

See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.

Other Income Statement Variances

Second Quarter 2025 Compared to Second Quarter 2024

Purchased power includes an increase in second quarter 2025 of $20 million in costs related to the procurement of capacity through MISO’s annual planning resource auction, including the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months.  Although Entergy Texas does not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates, in June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually.  Entergy Texas plans to file for such a rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Depreciation and amortization expenses decreased primarily due to the recognition of