Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 965

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 965
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 ended December 31, 2023, filed with the SEC on February 23, 2024, for discussion of results of operations for 2023 compared to 2022.

Income Tax Legislation and Regulation

See the “Income Tax Legislation and Regulation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

    Cash flows for the years ended December 31, 2024, 2023, and 2022 were as follows:

 202420232022 (In Thousands)Cash and cash equivalents at beginning of period$21,986 $3,497 $28 Net cash provided by (used in):   Operating activities823,649 641,691 409,427 Investing activities(928,418)(1,125,948)(764,069)Financing activities267,780 502,746 358,111 Net increase in cash and cash equivalents163,011 18,489 3,469 Cash and cash equivalents at end of period$184,997 $21,986 $3,497 

2024 Compared to 2023

Operating Activities

Net cash flow provided by operating activities increased $182 million in 2024 primarily due to lower fuel and purchased power costs and the timing of recovery of fuel and purchased power costs.  See Note 2 to the financial statements for a discussion of fuel and purchased power cost recovery.  The increase was partially offset by:

•the timing of payments to vendors;

•an increase of $22.6 million in interest paid; and

•an increase of $14.5 million in storm spending primarily due to Hurricane Beryl restoration efforts in 2024.

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

Investing Activities

Net cash flow used in investing activities decreased $197.5 million in 2024 primarily due to money pool activity and cash collateral of $7 million posted in 2023, and subsequently returned to Entergy Texas in 2024, to support Entergy Texas’s obligations to MISO.  The decrease was partially offset by:

•an increase of $148.8 million in transmission construction expenditures primarily due to higher capital expenditures as a result of increased development in Entergy Texas’s service area and increased spending on various transmission projects in 2024;

•an increase of $