Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 464

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 464
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 with the Hurricane Isaac securitization, recognized in 2017 as a result of the Tax Cuts and Jobs Act.  See Note 3 to the financial statements for further discussion of the reversal of the regulatory liability.2023 Formula Rate Plan FilingIn August 2024, pursuant to the global stipulated settlement agreement, Entergy Louisiana filed its formula rate plan evaluation report for its 2023 calendar year operations.  Consistent with the global stipulated settlement agreement, the filing reflected a 9.7% allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint.  For the 2023 test year, however, the bandwidth provisions of the formula rate plan were 

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

temporarily suspended and, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana implemented the September 2024 formula rate plan rate adjustments effective with the first billing cycle of September 2024.  Those adjustments included a $120 million increase in base rider formula rate plan revenue and a $101.8 million one-time incremental net decrease consistent with the terms of the global stipulated settlement.  The formula rate plan rate adjustments reflected in the evaluation report also include a redetermination of the transmission recovery mechanism, the distribution recovery mechanism, the additional capacity mechanism, the tax adjustment mechanism, the MISO cost recovery mechanism, and other one-time adjustments.  In January 2025, Entergy Louisiana and the LPSC filed a joint report indicating that no disputed issues remained in the proceeding and requesting that the LPSC issue an order accepting Entergy Louisiana’s evaluation report and, ultimately, resolving this matter.  Entergy Louisiana expects a decision on the joint report in first quarter 2025.Investigation of Costs Billed by Entergy ServicesIn November 2018 the LPSC issued a notice of proceeding initiating an investigation into costs incurred by Entergy Services that are included in the retail rates of Entergy Louisiana.  As stated in the notice of proceeding, the LPSC observed an increase in capital construction-related costs incurred by Entergy Services.  Discovery was issued and included efforts to seek highly detailed information on a broad range of matters unrelated to the scope of the audit.  In September 2024 the LPSC issued an order approving a settlement that resolved, with prejudice, all other issues identified by the staff in the matter and closed the docket.  See “2023 Entergy Louisiana Rate