Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 54

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 54
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 with forward-looking features -  rider: purchased gasEntergy Texas$4.4 (h)9.57%6.61%51.2% -  historical test year rate case and interim rate base riders (distribution, transmission, and generation cost recovery riders) -  riders: fuel, capacity, cost recovery riders (distribution, transmission, and generation), rate case expenses, and advanced metering infrastructure surcharge, among othersSystem Energy$1.83 (i)9.65%7.41%52.0% -  monthly cost of service

(a)Based on 2025 test year.

(b)Based on $2.0 billion in accumulated deferred income taxes at a 0% cost rate included in the weighted-average cost of capital calculation.

(c)Based on December 31, 2023 test year and excludes approximately $100 million of transmission plant investment included in the transmission recovery mechanism and approximately $300 million of distribution plant investment included in the distribution recovery mechanism, as well as approximately $400 million of net accumulated deferred tax liability items included in the tax adjustment mechanism.

(d)Based on September 30, 2023 test year.

(e)Based on 2024 forward test year.

(f)Based on December 31, 2023 test year and known and measurables through December 31, 2024.

(g)In October 2023 the City Council approved a three-year extension of Entergy New Orleans’s formula rate plan, modified to reflect a 55% equity ratio for rate setting purposes.

(h)Based on December 31, 2021 test year and excludes $0.5 billion in cost recovery riders.

(i)Based on calculation as of December 31, 2024 for Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans.  Effective July 2022, Entergy Mississippi’s bills from System Energy reflect a rate base reduction for the advance collection of sale-leaseback rental costs, resulting in a calculation of $1.82 billion as of December 31, 2024.  See Note 2 to the financial statements for discussion of the System Energy settlement agreements.

Entergy Arkansas

Formula Rate Plan

Between base rate cases, Entergy Arkansas is able to adjust base rates annually, subject to certain caps, through formula rate plans that utilize a forward test year.  Entergy Arkansas is subject to a maximum rate change of 4% of the filing year total retail revenue.  In addition, Entergy