Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 215

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 215
---
 cycle in October 2024 and an increase in the distribution cost recovery factor rider effective in late December 2024, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

The volume/weather variance is primarily due to an increase in weather-adjusted residential usage and an increase in industrial usage, partially offset by the effect of less favorable weather on residential sales.  The increase in weather-adjusted residential usage is primarily due to an increase in customers.  The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals, chlor-alkali, and technology industries.  The increased usage from these industrial customers has a relatively smaller effect on operating revenues because a larger portion of the revenues from these customers comes from fixed charges.

2

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

Total electric energy sales for Utility for the three months ended June 30, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential8,899 9,557 (7)Commercial7,265 7,236 — Industrial15,620 13,973 12 Governmental617 626 (1)Total retail32,401 31,392 3 Sales for resale4,133 3,052 35 Total36,534 34,444 6 

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 second quarter 2025 of $20 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