Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 28

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 3
Chunk 28
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 by MISO.  See Note 2 to the financial statements 

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

in the Form 10-K for discussion of the recovery of these costs;

•an increase of $3.8 million in loss provisions;

•an increase of $3.8 million in bad debt expense;

•an increase of $3.5 million in insurance expenses primarily due to higher premiums in 2025 as compared to 2024; and

•several individually insignificant items.

The increase was partially offset by:

•a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025.  See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025;

•contract costs of $14.3 million in 2024 related to operational performance, customer service, and organizational health initiatives; and

•a decrease of $7.9 million in nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2025 as compared to 2024.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024.

Depreciation and amortization expenses increased primarily due to additions to plant in service and increases in nuclear depreciation rates effective September 2024 and September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024.  See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.

Other regulatory charges (credits) - net includes regulatory charges of $150.2 million, recorded in second quarter 2024, to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023.  In addition, Entergy Louisiana 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.  See Note 2 to