Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 256

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 256
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4

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

Advanced Power Station project, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi.

Parent and Other

Other income increased primarily due to legal provisions recorded in third quarter 2024.

Interest expense decreased primarily due to lower commercial paper balances and lower variable interest rates on commercial paper and credit facilities in 2025 as compared to 2024.

Income Taxes

The effective income tax rate was 22.7% for the third quarter 2025.  The difference in the effective income tax rate for the third quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.

The effective income tax rate was 25% for the third quarter 2024.  The difference in the effective income tax rate for the third quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the resolution of an Arkansas state income tax audit.  See Note 3 to the financial statements in the Form 10-K for discussion of the Arkansas state income tax audit resolution.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024 showing how much the line item increased or (decreased) in comparison to the prior period.

UtilityParent &Other (a)Entergy(In Thousands)2024 Net Income (Loss) Attributable to Entergy Corporation$1,422,779 ($653,636)$769,143 Operating revenues858,937 (8,543)850,394 Fuel, fuel-related expenses, and gas purchased for resale32,093 (15,647)16,446 Purchased power363,207 (13,535)349,672 Other regulatory charges (credits) - net(228,658)— (228,658)Other operation and maintenance58,869 (2,265)56,604