Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 119

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 4
Chunk 119
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 December 31, 2023$18,753 $2,189,461 $2,208,214 Net income (loss)(2,302)29,734 27,432 Balance at March 31, 2024$16,451 $2,219,195 $2,235,646 Balance at December 31, 2024$8,202 $2,400,786 $2,408,988 Net income (loss)(2,479)49,345 46,866 Capital contribution from parent— 62,500 62,500 Balance at March 31, 2025$5,723 $2,512,631 $2,518,354 See Notes to Financial Statements.

108

ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Entergy New Orleans had net income of $12.1 million for the three months ended March 31, 2025 compared to a net loss of $49.0 million for the three months ended March 31, 2024 primarily due to a $78.5 million ($57.4 million net-of-tax) regulatory charge, recorded in first quarter 2024, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit.  Also contributing to the net income were lower other operation and maintenance expenses, partially offset by higher interest expense.  See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and discussion of the resolution of the 2016-2018 IRS audit.

Operating Revenues

Following is an analysis of the change in operating revenues comparing the first quarter 2025 to the first quarter 2024:

Amount(In Millions)2024 operating revenues$193.0 Fuel, rider, and other revenues that do not significantly affect net income(18.1)Retail electric price1.7 Volume/weather4.5 2025 operating revenues$181.1 

Entergy New Orleans’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.