Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 45

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 3
Chunk 45
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 amount of $25 million scheduled to expire in June 2027.  The credit facility includes fronting commitments for the issuance of letters of credit against $10 million of the borrowing capacity of the facility.  As of March 31, 2025, there were no cash borrowings and no letters of credit outstanding under the credit facility.  In addition, Entergy New Orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO.  As of March 31, 2025, a $0.5 million letter of credit was outstanding under Entergy New Orleans’s uncommitted letter of credit facility.  See Note 4 to the financial statements herein for additional discussion of the credit facilities.

State and Local Rate Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation” in the Form 10-K for a discussion of state and local rate regulation.  The following is an update to that discussion.

Retail Rates

2025 Formula Rate Plan Filing

In April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing.  The 2024 evaluation report produced an electric earned return on equity of 10.98% and a gas earned return on equity of 8.96% compared to the authorized return on equity for each of 9.35%.  Without adjustments, this would result in a decrease in electric rates of $13.8 million and no change in gas rates.  The decrease in electric rates is driven by the realignment of regulatory liabilities into the formula from a separate rate mechanism, partially offset by the cost of known and measurable electric capital additions.  The filing also commences the previously authorized recovery of certain regulatory costs and requests a revenue-neutral recovery to offset a proposed reduction in bill payment late fees.  Taking into account these proposed adjustments, the filing presents a decrease in authorized electric revenues of $8.6 million and an increase in authorized gas revenues of $0.5 million.  The filing is subject to a 75-day review period, followed by a 25-day period to resolve any disputes among the parties.  For any disputed rate adjustments, however, the City Council would set a procedural schedule to resolve.  Resulting rates will be effective with the first billing cycle of September 2025 pursuant to the formula rate plan tariff.

Federal Regulation

See “MANAGEMENT’S FINANCIAL