Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 179

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1A
Chunk 179
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 generator interconnection agreements.

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

The increase was partially offset by:

•the issuance of $425 million of 5.15% Series mortgage bonds in January 2023;

•the repayment, at maturity, of $375 million of 3.70% Series mortgage bonds in June 2024;

•the issuance of $300 million of 5.30% Series mortgage bonds in August 2023;

•net repayments of $47.7 million in 2024 as compared to net long-term borrowings of $70.2 million in 2023 on the nuclear fuel company variable interest entity’s credit facility; and

•money pool activity.

Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $130.2 million in 2024 compared to decreasing by $35.4 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.

See Note 5 to the financial statements for further details of long-term debt.

2023 Compared to 2022

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Cash Flow” in Item 7 of Entergy Arkansas’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024, for discussion of operating, investing, and financing cash flow activities for 2023 compared to 2022.

Capital Structure

Entergy Arkansas’s debt to capital ratio is shown in the following table.  The decrease in the debt to capital ratio for Entergy Arkansas is primarily due to capital contributions of $695 million received from Entergy Corporation in 2024, partially offset by the net issuance of long-term debt in 2024.

 December 31,2024December 31,2023Debt to capital53.6 %55.5 %Effect of subtracting cash— %— %Net debt to net capital (non-GAAP)53.6 %55.5 %

Net debt consists of debt less cash and cash equivalents.  Debt consists of short-term borrow