Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 308

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 308
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 2024 primarily due to money pool activity and cash collateral of $7 million posted in 2023, and subsequently returned to Entergy Texas in 2024, to support Entergy Texas’s obligations to MISO.  The decrease was partially offset by:

•an increase of $148.8 million in transmission construction expenditures primarily due to higher capital expenditures as a result of increased development in Entergy Texas’s service area and increased spending on various transmission projects in 2024;

•an increase of $108.2 million in distribution construction expenditures primarily due to higher capital expenditures for storm restoration in 2024 and higher capital expenditures as a result of increased development in Entergy Texas’s service area.  The increase in storm restoration expenditures is primarily due to Hurricane Beryl restoration efforts in 2024;

•an increase of $92.4 million in non-nuclear generation construction expenditures primarily due to higher spending on the Legend Power Station project; and

•the partial sale of a service center in April 2023 for $11 million as part of an eminent domain proceeding.

Decreases in Entergy Texas’s receivable from the money pool are a source of cash flow, and Entergy Texas’s receivable from the money pool decreased $299.4 million in 2024 compared to increasing by $218.4 million in 2023.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities decreased $235 million in 2024 primarily due to:

•a capital contribution of $150 million received from Entergy Corporation in 2023 in order to maintain Entergy Texas’s capital structure and in anticipation of various capital expenditures;

•the payment of $69 million of common stock dividends in 2024.  No common stock dividends were paid in 2023 in order to maintain Entergy Texas’s capital structure; and

•a decrease of $13.2 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements.

2023 Compared to 2022

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Cash Flow” in Item 7 of Entergy Texas’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC