Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 3

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 3
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 was offset by certain book and tax differences related to utility plant items and the amortization of excess state accumulated deferred income taxes as a result of tax rate changes.

The effective income tax rate was 24.8% 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 certain book and tax differences related to utility plant items and the accrual for state income taxes, partially offset by the amortization of state accumulated deferred income taxes as a result of tax rate changes.

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$4,747 $3,632 Net cash provided by (used in):Operating activities257,177 287,251 Investing activities(161,111)(371,389)Financing activities(45,753)126,073 Net increase in cash and cash equivalents50,313 41,935 Cash and cash equivalents at end of period$55,060 $45,567 

Operating Activities

Net cash flow provided by operating activities decreased $30.1 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.  See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•lower collections from customers; and

•higher fuel and purchased power payments.

Investing Activities

Net cash flow used in investing activities decreased $210.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:

•the initial payment of approximately $169.7 million in February 2024 for the purchase of the Walnut Bend Solar facility;

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Table of ContentsEntergy Arkansas, LLC and SubsidiariesManagement's Financial Discussion and Analysis

•a decrease of $27.5 million in information technology capital expenditures primarily due to decreased spending on various technology