Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 80

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 80
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 the areas served by Entergy New Orleans.  The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.  In December 2024, in accordance with the terms of its storm recovery reserve escrow agreement, Entergy New Orleans transmitted to the City Council a notice of intent to withdraw up to $20 million in estimated storm costs resulting from Hurricane Francine from its storm recovery reserve escrow account, subject to the City Council’s certification of those costs.  In January 2025, the City Council authorized the withdrawal, and in February 2025, Entergy New Orleans withdrew $10.3 million from its storm recovery reserve escrow account.  In October 2025, Entergy New Orleans withdrew an additional $2.8 million from its storm recovery reserve escrow account.  Also in October 2025, Entergy New Orleans submitted an application to the City Council seeking certification that the approximately $13.1 million in storm restoration costs associated with Hurricane Francine were reasonable, necessary, and prudently incurred.

State and Local Rate Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation” in the Form 10-K for a discussion of state and local rate regulation.  The following is an update to that discussion.

Retail Rates

2025 Formula Rate Plan Filing

In April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing.  The 2024 evaluation report produced an electric earned return on equity of 10.98% compared to the authorized return on equity of 9.35%.  Without adjustments, this would have resulted in a decrease in electric rates of $13.8 million.  The decrease in electric rates was driven by the realignment of regulatory liabilities into the formula from a separate rate mechanism, partially offset by the cost of known and measurable electric capital additions.  The filing also commenced the previously authorized recovery of certain regulatory costs and requested a revenue-neutral recovery to offset a proposed reduction in bill payment late fees.  Taking into account these 

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

proposed adjustments, the filing presented a decrease in authorized electric revenues of $8.6 million.  The City Council’s advisors issued their report in July 2025 seeking