Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 996

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 996
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 Agreement to reflect the revenue requirement effects of Grand Gulf’s updated depreciation rates as approved by the FERC in August 2023.  See Note 2 to the financial statements for discussion of the Unit Power Sales Agreement depreciation amendment proceeding; and

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Table of ContentsSystem Energy Resources, Inc.Management’s Financial Discussion and Analysis

•refunds of $19.3 million included in May 2023 service month bills under the Unit Power Sales Agreement to reflect the effects of the partial settlement agreement approved by the FERC in April 2023.  See Note 2 to the financial statements for discussion of the Unit Power Sales Agreement complaint.

Investing Activities

Net cash flow used in investing activities increased by $242.1 million in 2024 primarily due to:

•money pool activity;

•an increase of $94.6 million as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and

•an increase of $61 million in nuclear construction expenditures primarily due to higher spending in 2024 on Grand Gulf outage projects and upgrades.

Increases in System Energy’s receivable from the money pool are a use of cash flow, and System Energy’s receivable from the money pool increased $2.9 million in 2024 compared to decreasing by $95 million in 2023.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Financing Activities

System Energy’s financing activities provided $315.3 million of cash in 2024 compared to using $200.6  million of cash in 2023 primarily due to the following activity:

•the issuance of $300 million of 5.30% Series mortgage bonds in December 2024;

•the repayment, at maturity, of $250 million of 4.10% Series mortgage bonds in April 2023;

•net long-term borrowings of $51.2 million in 2024 compared to net repayments of $51.1 million in 2023 on the nuclear fuel company variable interest entity’s credit facility;

•a capital contribution of $150 million received from Entergy Corporation in January 2024 in order to maintain System Energy’s capital structure;

•the repayment, prior to maturity, in