Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 31

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 31
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 11 Commercial1,002 963 4 Industrial526 494 6 Governmental89 87 2   Total retail  2,928 2,730 7 Sales for resale:  Non-associated companies694 1,988 (65)Total3,622 4,718 (23)

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

Other Income Statement Variances

Other operation and maintenance expenses increased primarily due to an increase of $4.2 million in storm damage provisions and an increase of $3.5 million in power delivery expenses primarily due to higher vegetation maintenance costs.  See Note 2 to the financial statements in the Form 10-K for discussion of Entergy Mississippi’s storm damage mitigation and restoration rider.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Other regulatory charges (credits) – net includes a regulatory charge of $21 million, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance.

Other income increased primarily due to an increase in the amortization of tax gross ups on customer advances for construction and an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025.

Interest expense increased primarily due to carrying costs on customer advances for construction and the issuance of $300 million of 5.85% Series mortgage bonds in May 2024.

Income Taxes

The effective income tax rates were 24.1% for the first quarter 2025 and 22.2% for the first quarter 2024.  The differences in the effective income tax rates for the first quarter 2025 and the first quarter 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

98

Table of ContentsEntergy Mississippi, LLC and SubsidiariesManagement’s Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, 2025 and 2024 were as follows:

20252024(In Thousands)Cash and cash equivalents at beginning