Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 52

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 52
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idiariesManagement’s Financial Discussion and Analysis

Income Taxes

The effective income tax rate was 15.6% for the first quarter 2025.  The difference in the effective income tax rate for the first quarter 2025 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.

The effective income tax rate was 19.1% for the first quarter 2024.  The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.

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.

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 of period$184,997 $21,986 Net cash provided by (used in):Operating activities61,794 110,907 Investing activities(440,985)34,303 Financing activities492,329 10,740 Net increase in cash and cash equivalents113,138 155,950 Cash and cash equivalents at end of period$298,135 $177,936 

Operating Activities

Net cash flow provided by operating activities decreased $49.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the timing of recovery of fuel and purchased power costs, an increase of $38.7 million in interest paid, higher fuel and purchased power payments, and lower collections from customers.  The decrease was partially offset by the timing of payments to vendors.  See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery.

Investing Activities

Entergy Texas’s investing activities used $441.0 million of cash for the three months ended March 31, 2025 compared to providing $34.3 million of cash for the three months ended March 31