Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 606

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 606
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 regulated CCR facility).  Entergy does not have any legacy impoundments; however, the definition of CCR management units includes on-site areas where CCR was beneficially used.  This is contrary to the previous CCR rule which exempted beneficial uses that met certain criteria.  Under this expanded rule, all facilities must identify and delineate any CCRMU greater than one ton and submit a facility evaluation report by February 2026.  Any potential requirements for corrective action or operational changes under the various CCR rules continue to be assessed.  Given the complexity and recency of the EPA guidance, Entergy is still evaluating the level of work that will ultimately be required to comply with the rule.  Based on initial estimates of multiple possible remediation scenarios, Entergy Arkansas and Entergy Mississippi recorded increases of $31.2 million and $9.1 million, respectively, in their decommissioning cost liabilities, along with corresponding increases in the related asset retirement cost assets that will be depreciated over the remaining useful lives of the units.  Entergy will continue to update the asset retirement obligation as the requirements of the revised CCR rule are clarified.OtherIn 2024, Entergy Mississippi recorded an asset retirement obligation to reflect decommissioning costs related to an obligation under the Sunflower Solar facility’s land lease agreements to remove the electrical system and return the land to its normal condition.  This estimate resulted in the establishment of a $4.0 million decommissioning cost liability, along with the establishment of a related asset retirement cost asset that will be depreciated over the remaining initial lease term.  See Note 14 to the financial statements for discussion of Entergy Mississippi’s purchase of the Sunflower Solar facility.In 2024, Entergy Arkansas recorded asset retirement obligations to reflect decommissioning costs related to obligations to remove the electrical systems and return the land to its normal condition under the respective land lease agreements for the Walnut Bend Solar facility and the Driver Solar facility.  These estimates resulted in the establishment of a decommissioning cost liability of $4.5 million for the Walnut Bend Solar facility and of $13.2 million for the Driver Solar facility, along with the establishment of related asset retirement cost assets that will be depreciated over the remaining initial lease terms, respectively.  See Note 14 to the financial statements for discussion of Entergy Arkansas’s purchase of the Walnut Bend Solar facility and the Driver Solar facility.Prior to August 2024, Entergy Louisiana was a partner in