Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 217

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 4
Chunk 217
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, petroleum refining, industrial gases, and primary metals industries, and an increase in demand from small industrial customers.

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Table of ContentsEntergy Texas, Inc. and SubsidiariesManagement’s Financial Discussion and Analysis

Total electric energy sales for Entergy Texas for the nine months ended September 30, 2025 and 2024 are as follows:

20252024% Change(GWh)Residential5,514 5,205 6 Commercial3,869 3,764 3 Industrial7,355 6,996 5 Governmental201 201 —   Total retail  16,939 16,166 5 Sales for resale:  Non-associated companies264 487 (46)Total17,203 16,653 3 

See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Purchased power includes an increase in third quarter 2025 of $7.9 million in costs related to the procurement of capacity through MISO’s annual planning resource auction, including the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months.  Although Entergy Texas does not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates, in June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually.  Entergy Texas plans to file for such a rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Other operation and maintenance expenses increased primarily due to:

•an increase of $3.7 million in power delivery expenses primarily due to higher vegetation maintenance costs and a higher scope of work performed in 2025 as compared to 2024;

•an increase of $1.6 million in loss provisions;

•an increase of $1.5 million in bad debt expense; and

•several individually insignificant items.

The increase was partially offset by contract costs of $2.6 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives.

Taxes other than income taxes increased primarily due to increases in ad val