Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 59

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 59
---
 the LPSC voted unanimously to approve the LPSC staff’s Final Phase 1 Report and proposal, and an order was issued in August 2024.

In December 2024 the LPSC staff issued its Phase 2 Report, addressing enhanced combined heat and power options, energy displacement sleeved PPAs, and other matters.  The LPSC staff also issued various data requests to be answered by all jurisdictional utilities.  The LPSC staff has indicated that the Phase 3 Report, which will address partial or full retail open access and other issues that were deferred from the Phase 2 Report, is expected to be completed by the third quarter 2025.  In January 2025, Entergy Louisiana filed a motion asking the LPSC to provide renewed guidance as to whether the inquiry in this proceeding into the remaining issues in the Phase 3 Report is appropriate and consistent with the LPSC’s current policy objectives, or whether the docket has achieved its purpose and may be closed.  The LPSC is expected to consider the motion at its March 2025 meeting.

Other

In March 2016 the LPSC opened two dockets to examine, on a generic basis, issues that it identified in connection with its review of Cleco Corporation’s acquisition by third party investors.  The first docket is captioned “In re: Investigation of double leveraging issues for all LPSC-jurisdictional utilities,” and the second is captioned “In re: Investigation of tax structure issues for all LPSC-jurisdictional utilities.”  In April 2016 the LPSC clarified that the concerns giving rise to the two dockets arose as a result of its review of the structure of the Cleco-Macquarie transaction and that the specific intent of the directives is to seek more information regarding intra-corporate debt financing of a utility’s capital structure as well as the use of investment tax credits to mitigate the tax obligation at the parent level of a consolidated entity.  No schedule has been set for either docket, and limited discovery has occurred.

In September 2019 the LPSC issued an order modifying its rule regarding net metering installations.   Among other things, the rule provides for 2-channel billing for net metering with excess energy put to the grid being compensated at the utility’s avoided cost.  However, the rule does provide that net meter installations in place as of December 31, 2019 will be subject to 1:1 net metering with excess energy put to the grid being