Company: EAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000065984-25-000046
Chunk: 244

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 244
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 expire in June 2027.  As of March 31, 2025, there were $5.4 million in loans outstanding under the credit facility for the Entergy Arkansas nuclear fuel company variable interest entity.  See Note 4 to the financial statements herein for discussion of the nuclear fuel company variable interest entity credit facility.

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

Lake Catherine Unit 5

As discussed in the Form 10-K, in November 2024, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Lake Catherine Unit 5, a 446 MW hydrogen-capable simple-cycle natural gas combustion turbine facility to be located at the existing Lake Catherine facility site in Hot Spring County, Arkansas.  In December 2024 other parties, including the APSC general staff, filed testimony opposing the resource, although the APSC general staff recognized the capacity need for the resource.  Entergy Arkansas filed testimony in January 2025 further supporting its application, and in February 2025 the opposing parties filed responsive rebuttal testimony continuing to dispute the estimated costs and to dispute that Entergy Arkansas performed a market solicitation sufficient to demonstrate that this resource is the most reasonable option for customers.  Also in February 2025, Entergy Arkansas filed surrebuttal testimony responding to the opposing parties’ testimony.  A hearing was held in March 2025, and in April 2025 the APSC issued an order approving certification of the facility.  The order also provided a presumption of prudence finding with respect to a benchmark project cost, which excluded AFUDC and contingency among other items.  Entergy Arkansas will have the opportunity to later present all actual costs to the APSC for review for a prudence determination, including any costs incremental to the benchmark.  Entergy Arkansas is evaluating potential responses to the APSC order.  Subject to receipt of required regulatory approval and other conditions, the facility is expected to be in service by the end of 2028.

State and Local Rate Regulation and Fuel-Cost Recovery

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery.  The following are updates to that discussion.

Retail Rates

Grand Gulf Credit Rider

As discussed in the Form