Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 299

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 299
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idiariesNotes to Financial Statements

Grand Gulf-Related AgreementsSee Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements, including the Unit Power Sales Agreement, the Availability Agreement, and the Reallocation Agreement.  The following is an update to that discussion.As discussed in the Form 10-K, System Energy historically sold all of its share of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans in accordance with specified percentages (Entergy Arkansas - 36%, Entergy Louisiana - 14%, Entergy Mississippi - 33%, and Entergy New Orleans - 17%) as ordered by the FERC under the Unit Power Sales Agreement.   In August 2024 the LPSC approved a settlement with Entergy Louisiana to globally resolve all of the LPSC’s actual and potential claims in multiple docketed proceedings pending before the FERC and with System Energy’s past implementation of the Unit Power Sales Agreement.  The settlement was approved by the FERC in November 2024.  The terms of the settlement included an agreement that Entergy Louisiana would divest to Entergy Mississippi its 14% share of capacity and energy from Grand Gulf under the Unit Power Sales Agreement and its 2.43% share of capacity and energy from Entergy Arkansas under the MSS-4 replacement tariff.  This divestiture was being effectuated initially through Entergy Mississippi’s purchases from Entergy Louisiana pursuant to a bridge PPA governed by the MSS-4 replacement tariff (bridge PPA).  In September 2024, Entergy Mississippi filed a notice of intent with the MPSC that related to and sought approval of the divestiture.  The bridge PPA to effectuate this divestiture was approved by the FERC in November 2024.  The MPSC approved the bridge PPA, effective as of January 1, 2025.  Under the divestiture, Entergy Mississippi also assumed any and all of Entergy Louisiana’s rights and obligations under the Availability Agreement and agreed to hold Entergy Louisiana harmless with respect thereto, as of January 1, 2025.Effective October 1, 2025, System Energy began selling all of its share of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans in accordance with specified percentages (Entergy Arkansas - 24.2%, Entergy Mississippi - 56.4%, and Ent