Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 221

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 221
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See Note 12 to the financial statements herein for additional discussion of operating revenues.

Other Income Statement Items

Utility

Purchased power includes an increase in 2025 of $21 million in costs, at Entergy Texas, 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.

Other operation and maintenance expenses increased from $1,367 million for the six months ended June 30, 2024 to $1,376 million for the six months ended June 30, 2025 primarily due to:

•an increase of $13 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;

•an increase of $12 million in bad debt expense;

•an increase of $9 million in loss provisions;

•an increase of $9 million in transmission costs allocated by MISO.  See Note 2 to the financial statements in the Form 10-K for discussion of the recovery of these costs;

•an increase of $8 million in storm damage provisions; and

•an increase of $8 million in power delivery expenses primarily due to higher vegetation maintenance costs.

The increase was partially offset by:

•contract costs of $24 million in 2024 related to operational performance, customer service, and organizational health initiatives;

•a decrease of $12 million in nuclear generation expenses primarily due to a lower scope of work performed in 2025 as compared to 2024; and

•a decrease of $7 million in compensation and benefits costs primarily due to a higher revision to estimated incentive-based compensation expense in 2025 as compared to 2024.

7

Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

Asset write-offs, impairments, and related charges (credits) includes a