Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 255

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 7
Chunk 255
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 discussion of the Entergy Louisiana global stipulated settlement agreement.

Other regulatory charges (credits) - net includes the reversal in third quarter 2024 of a $92 million regulatory liability recognized for Entergy Arkansas’s obligation to return to customers the refund from the System Energy settlement with the APSC.  The reversal of the regulatory liability offsets a reduction in gross revenues from the retail one-time bill credits provided to customers in the August 2024 billing cycle through the Grand Gulf credit rider.  See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of Entergy Arkansas’s Grand Gulf credit rider.  In addition, Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income increased primarily due to:

•changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in third quarter 2024;

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Legend Power Station project and the Orange County Advanced Power Station project, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi; and

•an increase of $17 million in the amortization of tax gross ups on customer advances for construction.

Interest expense increased primarily due to:

•the issuance by Entergy Louisiana of $750 million of 5.80% Series mortgage bonds in January 2025;

•the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025;

•the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025;

•the issuance by System Energy of $300 million of 5.30% Series mortgage bonds in December 2024 and an additional $240 million in a reopening of the same series in May 2025; and

•carrying costs of $12 million in 2025 on customer advances for construction.

The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including the Legend Power Station project and the Orange County