Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 15

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 15
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 the financial statements herein and in the Form 10-K for discussion of the 2023 formula rate plan proceeding.

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

Total electric energy sales for Entergy Louisiana for the three months ended March 31, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential3,169 2,815 13 Commercial2,432 2,455 (1)Industrial8,533 7,761 10 Governmental195 199 (2)  Total retail  14,329 13,230 8 Sales for resale:  Associated companies1,448 1,258 15   Non-associated companies228 382 (40)Total16,005 14,870 8 

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

Other Income Statement Variances

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates effective September 2024 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024.  See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.

Other income increased primarily due to higher interest earned on money pool investments, an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, and an increase in the amortization of tax gross ups on customer advances for construction.  The increase was partially offset by changes in decommissioning trust fund activity, including portfolio rebalancing of the River Bend decommissioning trust fund in first quarter 2024.

Interest expense increased primarily due to the issuance of $700 million of 5.15% Series mortgage bonds in August 2024 and the issuance of $750 million of 5.80% Series mortgage bonds in January 2025.

Income Taxes

The effective income tax rate was 17.5% 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 the book and tax differences related to the non-taxable income distributions earned on preferred membership interests, book and tax differences related to the allowance for equity funds used during construction, and certain book and tax differences related