Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 300

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 300
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SC, the City Council, and the LPSC, and these settlements have been approved by the FERC.

Results of Operations

Net Income

Net income decreased $7.7 million primarily due a lower rate of return on rate base, including the effects of  lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy New Orleans effective with the June 2024 service month per the settlement agreement with the City Council and the lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy Louisiana effective with the September 2024 service month per the settlement with the LPSC.  The decrease was partially offset by higher operating revenues resulting from an increase in rate base.  See Note 2 to the financial statements in the Form 10-K for discussion of the settlements with the City Council and the LPSC.

Income Taxes

The effective income tax rate was 21.2% 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 the accrual for state income taxes, partially offset by book and tax differences related to utility plant items.

The effective income tax rate was 20.5% 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, 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.

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

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$28,908 $60 Net cash provided by (used in):Operating activities45,164 70,339 Investing activities(22,540)(188,259)Financing activities(48,963)229,361 Net increase (decrease) in cash and cash equivalents(26,339)111,441 Cash and cash equivalents at end of period$2,569 $