Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 359

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 359
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 as hedging instruments on the Registrant Subsidiaries’ income statements for the nine months ended September 30, 2025 and 2024 are as follows:InstrumentIncome Statement LocationAmount of gain(loss) recordedin the income statementRegistrant(In Millions)2025Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale($7.4)(a)Entergy MississippiFinancial transmission rightsPurchased power expense$37.9(b)Entergy ArkansasFinancial transmission rightsPurchased power expense$80.0(b)Entergy LouisianaFinancial transmission rightsPurchased power expense$9.3(b)Entergy MississippiFinancial transmission rightsPurchased power expense$12.8(b)Entergy New OrleansFinancial transmission rightsPurchased power expense$9.8(b)Entergy Texas2024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale$6.2(a)Entergy MississippiNatural gas swapsFuel, fuel-related expenses, and gas purchased for resale$0.5(a)Entergy New OrleansFinancial transmission rightsPurchased power expense$51.4(b)Entergy ArkansasFinancial transmission rightsPurchased power expense$55.3(b)Entergy LouisianaFinancial transmission rightsPurchased power expense$5.1(b)Entergy MississippiFinancial transmission rightsPurchased power expense$5.6(b)Entergy New OrleansFinancial transmission rightsPurchased power expense$15.5(b)Entergy Texas(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.Fair ValuesThe estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling.  Considerable judgment is required in developing the estimates of fair value.  Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange.  G