Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 270

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 270
---
 Mississippi’s receivable from the money pool increased $94.3 million for the three months ended March 31, 2025.  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 increased $680.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:

•the issuance of $600 million of 5.80% Series mortgage bonds in March 2025;

•an increase of $107.6 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements;

99

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

•a capital contribution of $62.5 million received from Entergy Corporation in order to maintain Entergy Mississippi’s capital structure; and

•money pool activity.

The increase was partially offset by borrowings of $100 million in 2024 on Entergy Mississippi’s credit facility.

Decreases in Entergy Mississippi’s payable to the money pool are a use of cash flow, and Entergy Mississippi’s payable to the money pool decreased by $17.5 million for the three months ended March 31, 2024.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

Capital Structure

Entergy Mississippi’s debt to capital ratio is shown in the following table.  The increase in the debt to capital ratio for Entergy Mississippi is primarily due to net issuance of long-term debt in 2025.

March 31, 2025December 31, 2024Debt to capital54.7 %50.4 %Effect of subtracting cash(5.4 %)(1.6 %)Net debt to net capital (non-GAAP)49.3 %48.8 %

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion.  Capital consists of debt and equity.  Net capital consists of capital less cash and cash equivalents.  Entergy Mississippi uses the debt to capital ratio in analyzing its financial