Company: EAI
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000065984-25-000132
Chunk: 388

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 388
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 September 30, 2024

Net income increased $128.6 million primarily due to a $131.8 million ($99.1 million net-of-tax) charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024, higher volume/weather, and higher retail electric price, partially offset by higher depreciation and amortization expenses, an $18.3 million reduction in income tax expense in third quarter 2024 as a result of the resolution of an Arkansas state income tax audit, higher interest expense, higher taxes other than income taxes, and higher other operation and maintenance expenses.  See Note 2 to the financial statements herein and in the Form 10-K for discussion of the opportunity sales proceeding.  See Note 3 to the financial statements in the Form 10-K for discussion of the resolution of the Arkansas state income tax audit.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

Following is an analysis of the change in operating revenues comparing the third quarter 2025 to the third quarter 2024:

Amount(In Millions)2024 operating revenues$662.1 Fuel, rider, and other revenues that do not significantly affect net income40.6 Retail one-time bill credit92.3 Volume/weather48.7 Retail electric price20.4 2025 operating revenues$864.1 

Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.  “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The retail one-time bill credit variance represents the disbursement of settlement proceeds in the form of a one-time bill credit provided to Entergy Arkansas’s retail customers during the August 2024 billing cycle through 

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

the Grand Gulf credit rider as a result of the System Energy settlement with the APSC.  There is no effect on net income because Entergy Arkansas previously recorded a regulatory liability for the effects of the System Energy settlement with the APSC.  See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC and see Note 2 to the financial statements herein and in the Form 10-K