Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 356

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 356
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 Value (c) (d)(In Millions)2025Assets:Financial transmission rightsPrepayments and other$31($1)$30Liabilities:Natural gas swapsOther current liabilities$5$—$52024Assets:Natural gas swapsPrepayments and other$2$—$2Financial transmission rightsPrepayments and other$21($1)$20Liabilities:Financial transmission rightsOther current liabilities($—)$1$1(a)Represents the gross amounts of recognized assets/liabilities(b)Represents the netting of fair value balances with the same counterparty(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $4 million as of September 30, 2025 and $2 million as of December 31, 2024

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended September 30, 2025 and 2024 are as follows:InstrumentIncome StatementLocationAmount of gain (loss)recorded in the income statement(In Millions)2025Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($6)Financial transmission rightsPurchased power expense(b)$362024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($1)Financial transmission rightsPurchased power expense(b)$33The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the nine months ended September 30, 2025 and 2024 are as follows:InstrumentIncome StatementLocationAmount of gain (loss)recorded in the income statement(In Millions)2025Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($7)Financial transmission rightsPurchased power expense(b)$1502024Natural gas swapsFuel, fuel-related expenses, and gas purchased for resale(a)($7)Financial transmission rightsPurchased power expense(b)$133(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through