Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 43

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 43
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 in future rates, and not as a reduction in bills previously issued, they are presented as other revenues in the table above.System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans.  System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC.  Effective January 1, 2025, Entergy Louisiana has divested all of its 14% share of capacity and energy from Grand Gulf and all of the capacity and energy from Grand Gulf that it purchases from Entergy Arkansas (approximately 2.43%) to Entergy Mississippi.  This divestiture is being effectuated initially under a designated PPA between Entergy Louisiana and Entergy Mississippi, which was accepted by the FERC in November 2024.  The MPSC approved the MSS-4 replacement PPA, effective as of January 1, 2025.  See Note 8 to the financial statements for further discussion of System Energy and the Unit Power Sales Agreement.Entergy’s Utility operating companies also sell excess power not needed for their own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S.  In the MISO market, Entergy offers its generation and bids its load into the market.  MISO settles these offers and bids based on locational marginal prices.  These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region.  MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system.  Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Natural GasEntergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and New Orleans, Louisiana, respectively.  Gas transferred to customers is measured by a meter at the customer’s property.  Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date.