Cover and table of contents

__________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from ____________ to ____________

Commission File Number			Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.						Commission File Number			Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.
1-11299			ENTERGY CORPORATION						1-35747			ENTERGY NEW ORLEANS, LLC
			(a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000									(a Texas limited liability company) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3702
			72-1229752									82-2212934
1-10764			ENTERGY ARKANSAS, LLC						1-34360			ENTERGY TEXAS, INC.
			(a Texas limited liability company) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000									(a Texas corporation) 2107 Research Forest Drive The Woodlands, Texas 77380 Telephone (409) 981-2000
			83-1918668									61-1435798
1-32718			ENTERGY LOUISIANA, LLC						1-09067			SYSTEM ENERGY RESOURCES, INC.
			(a Texas limited liability company) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 576-4000									(an Arkansas corporation) 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000
			47-4469646									72-0752777
1-31508			ENTERGY MISSISSIPPI, LLC
			(a Texas limited liability company) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000
			83-1950019

__________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Registrant			Title of Class			Trading Symbol			Name of Each Exchange on Which Registered
Entergy Corporation			Common Stock, $0.01 Par Value			ETR			New York Stock Exchange
			Common Stock, $0.01 Par Value			ETR			NYSE Texas
Entergy Arkansas, LLC			Mortgage Bonds, 4.875% Series due September 2066			EAI			New York Stock Exchange
Entergy Louisiana, LLC			Mortgage Bonds, 4.875% Series due September 2066			ELC			New York Stock Exchange
Entergy Mississippi, LLC			Mortgage Bonds, 4.90% Series due October 2066			EMP			New York Stock Exchange
Entergy New Orleans, LLC			Mortgage Bonds, 5.0% Series due December 2052			ENJ			New York Stock Exchange
			Mortgage Bonds, 5.50% Series due April 2066			ENO			New York Stock Exchange
Entergy Texas, Inc.			5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share)			ETI/PR			New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

Registrant			Title of Class
Entergy Texas, Inc.			Common Stock, no par value

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☑ No ☐

Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

			Large accelerated filer						Accelerated filer						Non-accelerated filer						Smaller reporting company						Emerging growth company
Entergy Corporation			ü
Entergy Arkansas, LLC															ü
Entergy Louisiana, LLC															ü
Entergy Mississippi, LLC															ü
Entergy New Orleans, LLC															ü
Entergy Texas, Inc.															ü
System Energy Resources, Inc.															ü

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Common Stock Outstanding						Outstanding at March 31, 2025
Entergy Corporation			($0.01 par value)			430,774,109

Entergy Corporation, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. separately file this combined Quarterly Report on Form 10-Q. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes representations only as to itself and makes no other representations whatsoever as to any other company. This combined Quarterly Report on Form 10-Q supplements and updates the Annual Report on Form 10-K for the calendar year ended December 31, 2024, filed by the individual registrants with the SEC, and should be read in conjunction therewith.

TABLE OF CONTENTS

			Page Number
Forward-looking Information			iii
Definitions			vii
Part I. Financial Information
Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis			1
Consolidated Income Statements			12
Consolidated Statements of Comprehensive Income			13
Consolidated Statements of Cash Flows			14
Consolidated Balance Sheets			16
Consolidated Statements of Changes in Equity			18
Notes to Financial Statements
Note 1. Commitments and Contingencies			19
Note 2. Rate and Regulatory Matters			21
Note 3. Equity			27
Note 4. Revolving Credit Facilities, Lines of Credit, Short-term Borrowings, and Long-term Debt			30
Note 5. Stock-based Compensation			35
Note 6. Retirement and Other Postretirement Benefits			36
Note 7. Business Segment Information			41
Note 8. Risk Management and Fair Values			42
Note 9. Decommissioning Trust Funds			54
Note 10. Income Taxes			59
Note 11. Variable Interest Entities			60
Note 12. Revenue			61
Note 13. Held for Sale			62
Item 3. Quantitative and Qualitative Disclosures About Market Risk			66
Item 4. Controls and Procedures			66
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			67
Consolidated Statements of Operations			75
Consolidated Statements of Cash Flows			77
Consolidated Balance Sheets			78
Consolidated Statements of Changes in Equity			80
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			81
Consolidated Income Statements			90
Consolidated Statements of Comprehensive Income			91
Consolidated Statements of Cash Flows			93
Consolidated Balance Sheets			94
Consolidated Statements of Changes in Equity			96

i

TABLE OF CONTENTS

			Page Number
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			97
Consolidated Income Statements			103
Consolidated Statements of Cash Flows			105
Consolidated Balance Sheets			106
Consolidated Statements of Changes in Equity			108
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			109
Consolidated Statements of Operations			115
Consolidated Statements of Cash Flows			117
Consolidated Balance Sheets			118
Consolidated Statements of Changes in Member’s Equity			120
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis			121
Consolidated Income Statements			128
Consolidated Statements of Cash Flows			129
Consolidated Balance Sheets			130
Consolidated Statements of Changes in Equity			132
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis			133
Income Statements			137
Statements of Cash Flows			139
Balance Sheets			140
Statements of Changes in Common Equity			142
Part II. Other Information
Item 1. Legal Proceedings			143
Item 1A. Risk Factors			143
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			143
Item 5. Other Information			144
Item 6. Exhibits			146
Signature			148

ii

FORWARD-LOOKING INFORMATION

In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, projections, strategies, and future events or performance. Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” “goal,” “commitment,” “expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements. Although each of these registrants believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-looking statement is based on information current as of the date of this combined report and speaks only as of the date on which such statement is made. Except to the extent required by the federal securities laws, each registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent filings with the SEC):

• resolution of pending and future rate cases and related litigation, formula rate proceedings and related negotiations, including various performance-based rate discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs, as well as delays in cost recovery resulting from these proceedings;

• regulatory and operating challenges and uncertainties and economic risks associated with the Utility operating companies’ participation in MISO, including the benefits of continued MISO participation, the effect of current or projected MISO market rules, market design and market and system conditions in the MISO markets, the allocation of MISO system transmission upgrade costs, delays in developing or interconnecting new generation or other resources or other adverse effects arising from the volume of requests in the MISO transmission interconnection queue, which delays or other adverse effects may be exacerbated by significant current and expected load growth, the MISO-wide base rate of return on equity allowed or any MISO-related charges and credits required by the FERC, and the effect of planning decisions that MISO makes with respect to future transmission investments by the Utility operating companies;

• changes in utility regulation, including, with respect to retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, including those capital investments associated with unrealized customer growth expectations (including data center customers), and the application of more stringent return on equity criteria, transmission reliability requirements, or market power criteria by the FERC or the U.S. Department of Justice;

• changes in the regulation or regulatory oversight of Entergy’s owned or operated nuclear generating facilities, nuclear materials and fuel, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and fuel;

• resolution of pending or future applications, as well as regulatory proceedings and litigation, relating to generation, transmission, or other facilities (including license modifications or other authorizations for nuclear generating facilities) and the effect of public and political opposition on these applications, regulatory proceedings, and litigation, including without limitation opposition to the employment of technologies to capture, transport, and store carbon dioxide from gas plants, land use opposition to new solar facilities and transmission lines, and land use and other environmental opposition to wind turbines;

• the performance of and deliverability of power from Entergy’s generation resources, including the capacity factors at Entergy’s nuclear generating facilities;

iii

FORWARD-LOOKING INFORMATION (Continued)

• increases in costs and capital expenditures that could result from changing regulatory requirements, changing governmental policies, priorities, programs, and actions, including as a result of tariffs, shifts in international trade policies, and other measures, changing or volatile economic conditions, disruptions to pre-existing supply chains and vendor relations, and emerging operating and industry issues, such as anticipated growth in demand from large data centers, and the risks related to recovery of these costs and capital expenditures from Entergy’s customers (especially in an increasing cost environment);

• the commitment of substantial human and capital resources required for the safe and reliable operation and maintenance of Entergy’s utility system, including its nuclear generating facilities;

• Entergy’s ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities;

• the prices and availability of fuel and power Entergy must purchase for its Utility customers, particularly given the recent and ongoing significant growth in liquified natural gas exports and the associated significantly increased demand for natural gas and resulting fluctuation in natural gas prices, increasing challenges with respect to natural gas transportation arrangements, and Entergy’s ability to meet credit support requirements for fuel and power supply contracts;

• volatility and changes in markets for electricity, natural gas, uranium, emissions allowances, and other energy-related commodities, including as a result of trade-related governmental actions, such as tariffs and other measures, and the effect of those changes on Entergy and its customers;

• changes in environmental laws and regulations, agency positions, or associated litigation, including requirements for reduced emissions of sulfur dioxide, nitrogen oxide, greenhouse gases, mercury, particulate matter and other regulated air emissions, heat and other regulated discharges to water, waste management and disposal, remediation of contaminated sites, wetlands protection and permitting, and reporting, and changes in costs of compliance with environmental laws and regulations, as well as changes to governmental policies incentivizing the development or utilization of alternative sources of generation;

• changes in laws and regulations, agency positions, or associated litigation related to protected species and associated critical habitat designations;

• the effects of changes in federal, state, or local laws and regulations, and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, trade/tariff, domestic purchase requirements, or energy policies and related laws, regulations, and other governmental actions, including as a result of prolonged litigation over proposed legislation or regulatory actions;

• the effects of full or partial shutdowns of the federal government or delays in obtaining government or regulatory actions or decisions;

• uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal and the level of spent fuel and nuclear waste disposal fees charged by the U.S. government or other providers related to such sites;

• variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, wildfires, or other weather events and the recovery of costs associated with restoration, including the ability to access funded storm reserves, federal and local cost recovery mechanisms, securitization, and insurance, as well as any related unplanned outages;

• effects of climate change, including the potential for increases in the frequency or severity of extreme weather events, such as hurricanes, heat waves, drought or wildfires, and rising sea levels or coastal land and wetland loss, and Entergy’s ability to effectively prepare for such effects and events, including through accelerated resilience plans and projects, and any challenges in execution thereof and/or in obtaining any necessary regulatory approvals for appropriate scope and timing of such plans and projects now and in the future;

• the risk that as a result of Entergy’s membership in Nuclear Electric Insurance Limited (NEIL), an incident at a NEIL member-insured nuclear generation facility could lead to a significant retrospective assessment;

iv

FORWARD-LOOKING INFORMATION (Continued)

• the risk that an incident at a nuclear generation facility participating in a secondary financial protection system could lead to a significant retrospective insurance premium;

• changes in the quality and availability of water supplies and the related regulation of water use and diversion;

• Entergy’s ability to manage and execute on its capital projects, including any capital projects to serve the growing demand for electricity driven in part by the anticipated development of large data centers, and to complete such capital projects timely and within budget, to obtain the anticipated performance or other benefits of such capital projects, and to manage its capital and operation and maintenance costs;

• the effects of supply chain disruptions, including those driven by geopolitical developments or trade-related governmental actions, including tariffs and other measures, on Entergy’s ability to complete its capital projects in a timely and cost-effective manner;

• Entergy’s ability to purchase and sell assets at attractive prices and on other attractive terms;

• the economic climate, and particularly economic conditions in the Utility service area and events and circumstances that could influence economic conditions in those areas, including power prices and inflation, and the risk that anticipated load growth may not materialize;

• changes to or the repeal of federal income tax laws, regulations, and interpretive guidance and policies, including the Inflation Reduction Act of 2022 and the continuing impact of the Tax Cuts and Jobs Act of 2017, and any related intended or unintended consequences on financial results and future cash flows;

• the effects of Entergy’s strategies to reduce tax payments;

• the effect of interest rate volatility and other changes in the financial markets and regulatory requirements for the issuance of securities, particularly as they affect access to and cost of capital and Entergy’s ability to refinance existing securities and fund investments and acquisitions;

• actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies’ ratings criteria;

• changes in inflation and interest rates and the impacts of inflation or a recession on Entergy’s customers;

• the effects of government investigations, proceedings, or audits;

• changes in technology, including (i) Entergy’s ability to effectively assess, acquire, implement, and manage new or emerging technologies, including its ability to maintain and protect personally identifiable information while doing so; (ii) the emergence of artificial intelligence (including machine learning), which may present increased electricity demand, as well as ethical, security, legal, operational, or regulatory challenges; (iii) advances in artificial intelligence (including machine learning) technologies that could reduce the expected electricity demand for these technologies and data centers; (iv) the impact of changes relating to new, developing, or alternative sources of generation such as distributed energy and energy storage, renewable energy, energy efficiency, demand side management, and other measures that reduce load and government policies impacting development or utilization of the foregoing; and (v) competition from other companies offering products and services to Entergy’s customers based on new or emerging technologies or alternative sources of generation;

• Entergy’s ability to effectively formulate and implement plans to increase its carbon-free energy capacity and to reduce its carbon emission rate and aggregate carbon emissions, including its commitment to achieve net-zero carbon emissions by 2050 and the related increasing investment in renewable power generation sources and carbon capture and storage, the potential impact on its business and financial condition of attempting to achieve such objectives, and Entergy’s ability to achieve its climate goals and commitments due to expected load growth;

• the effects, including increased security costs, of threatened or actual terrorism, cyber attacks or data security breaches, physical attacks on or other interference with facilities or infrastructure, natural or man-made electromagnetic pulses that affect transmission or generation infrastructure, accidents, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion;

v

FORWARD-LOOKING INFORMATION (Concluded)

• impacts of perceived or actual cybersecurity or data security threats or events on Entergy and its subsidiaries, its vendors, suppliers or other third parties interconnected through the grid, which could, among other things, result in disruptions to its operations, including but not limited to, the loss of operational control, temporary or extended outages, or loss of data, including but not limited to, sensitive customer, employee, financial or operations data;

• the effects of a catastrophe, pandemic (or other health-related event), or a global or geopolitical event such as escalating trade tensions between the United States and China or the military activities between Russia and Ukraine, or Israel and Hamas, including resultant economic and societal disruptions; fuel procurement disruptions; volatility in the capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available bank credit facilities); reduced demand for electricity, particularly from commercial and industrial customers; increased or unrecoverable costs; supply chain, vendor, and contractor disruptions, including as a result of trade-related sanctions; delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed outages; impacts to Entergy’s workforce availability, health, or safety; increased cybersecurity risks as a result of many employees telecommuting and/or working partially remotely; increased late or uncollectible customer payments; regulatory delays; executive orders affecting, or increased regulation of, Entergy’s business; changes in credit ratings or outlooks as a result of any of the foregoing; or other adverse impacts on Entergy’s ability to execute on its business strategies and initiatives or, more generally, on Entergy’s results of operations, financial condition, and liquidity;

• Entergy’s ability to attract and retain talented management, directors, and employees with specialized skills, institutional knowledge, capacity, and abilities, including the ability to effectively execute on Entergy’s growth strategy;

• Entergy’s ability to attract, retain, and manage an appropriately qualified and sufficiently staffed workforce;

• changes in accounting standards and corporate governance best practices;

• declines in the market prices of marketable securities and changes in interest rates and resulting pension and retiree welfare plan funding requirements and the effects on benefits costs for Entergy’s defined benefit pension and other postretirement benefits plans;

• future wage and employee benefits costs, including changes in discount rates and returns on benefit plan assets;

• changes in decommissioning trust fund values or earnings or in the timing of, requirements for, or cost to decommission Entergy’s nuclear plant sites and the implementation of decommissioning of such sites following shutdown;

• the effectiveness of Entergy’s risk management policies and procedures and the ability and willingness of its counterparties, including lending, hedging, credit support, and major customer counterparties, to satisfy their financial and performance commitments;

• reductions in the demand for electricity to power hyperscale data centers and the potential for stranded assets;

• concentration of business with a small number of customers in an industry based on emerging technologies, including artificial intelligence and machine learning; and

• Entergy and its subsidiaries’ ability to successfully execute on their business strategies, including their ability to complete strategic transactions that they may undertake, and their ability to meet the rapidly growing demand for electricity, including from hyperscale data center and other large customers, and to manage the impacts of growth in demand for electricity on customers and Entergy’s business.

vi

DEFINITIONS

Certain abbreviations or acronyms used in the text and notes are defined below:

Abbreviation or Acronym			Term
AFUDC			Allowance for Funds Used During Construction
ALJ			Administrative Law Judge
ANO 1 and 2			Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas
APSC			Arkansas Public Service Commission
Board			Board of Directors of Entergy Corporation
Cajun			Cajun Electric Power Cooperative, Inc.
capacity factor			Actual plant output divided by maximum potential plant output for the period
City Council			Council of the City of New Orleans, Louisiana
D.C. Circuit			U.S. Court of Appeals for the District of Columbia Circuit
DOE			United States Department of Energy
Entergy			Entergy Corporation and its direct and indirect subsidiaries
Entergy Corporation			Entergy Corporation, a Delaware corporation
Entergy Gulf States, Inc.			Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas
Entergy Gulf States Louisiana			Entergy Gulf States Louisiana, L.L.C., a Louisiana limited liability company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes. The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires. Effective October 1, 2015, the business of Entergy Gulf States Louisiana was combined with Entergy Louisiana.
Entergy Louisiana			Entergy Louisiana, LLC, a Texas limited liability company formally created as part of the combination of Entergy Gulf States Louisiana and the company formerly known as Entergy Louisiana, LLC (Old Entergy Louisiana) into a single public utility company and the successor to Old Entergy Louisiana for financial reporting purposes
Entergy Texas			Entergy Texas, Inc., a Texas corporation formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires.
Entergy Wholesale Commodities			Prior to January 1, 2023, one of Entergy’s reportable business segments consisting of non-utility business activities primarily comprised of the ownership, operation, and decommissioning of nuclear power plants, the ownership of interests in non-nuclear power plants, and the sale of the electric power produced by its operating power plants to wholesale customers
EPA			United States Environmental Protection Agency
FERC			Federal Energy Regulatory Commission
Form 10-K			Annual Report on Form 10-K for the calendar year ended December 31, 2024, filed with the SEC by Entergy Corporation and its Registrant Subsidiaries
GAAP			Generally Accepted Accounting Principles
Grand Gulf			Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
GWh			Gigawatt-hour(s), which equals one million kilowatt-hours
Independence			Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power, LLC
IRS			Internal Revenue Service
ISO			Independent System Operator
kV			Kilovolt

vii

DEFINITIONS (Concluded)

Abbreviation or Acronym			Term
kW			Kilowatt, which equals one thousand watts
kWh			Kilowatt-hour(s)
LPSC			Louisiana Public Service Commission
LURC			Louisiana Utilities Restoration Corporation
MISO			Midcontinent Independent System Operator, Inc., a regional transmission organization
MMBtu			One million British Thermal Units
MPSC			Mississippi Public Service Commission
MW			Megawatt(s), which equals one thousand kilowatts
MWh			Megawatt-hour(s)
Net debt to net capital ratio			Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, which is a non-GAAP measure
NRC			Nuclear Regulatory Commission
Palisades			Palisades Nuclear Plant (nuclear), previously owned as part of Entergy’s non-utility business, which ceased power production in May 2022 and was sold in June 2022
Parent & Other			The portions of Entergy not included in the Utility segment, primarily consisting of the activities of the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business which owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers and also provides decommissioning services to nuclear power plants owned by non-affiliated entities in the United States
PPA			Purchased power agreement or power purchase agreement
PUCT			Public Utility Commission of Texas
Registrant Subsidiaries			Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc.
River Bend			River Bend Station (nuclear), owned by Entergy Louisiana
SEC			Securities and Exchange Commission
System Agreement			Agreement, effective January 1, 1983, as modified, among the Utility operating companies relating to the sharing of generating capacity and other power resources. The agreement terminated effective August 2016.
System Energy			System Energy Resources, Inc.
Unit Power Sales Agreement			Agreement, dated as of June 10, 1982, as amended and approved by the FERC, among Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy’s share of Grand Gulf
Utility			Entergy’s reportable segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas distribution in portions of Louisiana
Utility operating companies			Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas
Waterford 3			Unit No. 3 (nuclear) of the Waterford Steam Electric Station, owned by Entergy Louisiana
weather-adjusted usage			Electric usage excluding the effects of deviations from normal weather

ENTERGY CORPORATION AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Entergy operates primarily through a single reportable segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business in portions of Louisiana. See Note 13 to the financial statements herein and the “Held for Sale - Natural Gas Distribution Businesses” section in Note 14 to the financial statements in the Form 10-K for discussion of the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. See Note 7 to the financial statements herein for discussion of and financial information regarding Entergy’s reportable segment.

Results of Operations

First Quarter 2025 Compared to First Quarter 2024

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the first quarter 2025 to the first quarter 2024 showing how much the line item increased or (decreased) in comparison to the prior period.

						Utility						Parent & Other (a)						Entergy
						(In Thousands)
2024 Net Income (Loss) Attributable to Entergy Corporation						$195,224						($119,943)						$75,281
Operating revenues						57,424						(5,178)						52,246
Fuel, fuel-related expenses, and gas purchased for resale						(265,421)						(6,674)						(272,095)
Purchased power						122,890						(5,286)						117,604
Other regulatory charges (credits) - net						(126,189)						—						(126,189)
Other operation and maintenance						(18,241)						3,877						(14,364)
Asset write-offs, impairments, and related charges (credits)						(131,775)						—						(131,775)
Taxes other than income taxes						6,362						(26)						6,336
Depreciation and amortization						13,215						67						13,282
Other income (deductions)						(29,552)						(5,046)						(34,598)
Interest expense						54,983						7,608						62,591
Other expenses						(2,739)						64						(2,675)
Income taxes						79,725						(678)						79,047
Preferred dividend requirements of subsidiaries and noncontrolling interests						407						—						407
2025 Net Income (Loss) Attributable to Entergy Corporation						$489,879						($129,119)						$360,760

(a)Parent & Other includes eliminations, which are primarily intersegment activity.

First quarter 2024 results of operations include: (1) a $132 million ($97 million net-of-tax) charge, recorded at Utility, to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024; and (2) a $78 million ($57 million net-of-tax) regulatory charge, recorded at Utility, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding. See Note 3 to the financial statements in the Form 10-K for

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

discussion of the Entergy New Orleans April 2024 settlement in principle and discussion of the resolution of the 2016-2018 IRS audit.

Operating Revenues

Utility

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

			Amount
			(In Millions)
2024 operating revenues			$2,772
Fuel, rider, and other revenues that do not significantly affect net income			(132)
Volume/weather			114
Retail electric price			76
2025 operating revenues			$2,830

The Utility operating companies’ 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 volume/weather variance is primarily due to the effect of more favorable weather on residential sales and an increase in industrial usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the petroleum refining, chlor-alkali, and primary metals industries.

The retail electric price variance is primarily due to:

• an increase in Entergy Arkansas’s formula rate plan rates effective January 2025;

• an increase in Entergy Louisiana’s formula rate plan revenues, including an increase in the distribution recovery mechanism, effective September 2024, partially offset by decreases in formula rate plan revenues due to interim formula rate plan rate adjustments effective January 2025 and March 2025;

• increases in Entergy Mississippi’s formula rate plan rates effective April 2024 and July 2024 and an increase in the interim facilities rate adjustment revenues effective January 2025; and

• the implementation of the distribution cost recovery factor rider effective with the first billing cycle in October 2024 and an increase in the distribution cost recovery factor rider effective in late December 2024, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

Total electric energy sales for Utility for the three months ended March 31, 2025 and 2024 are as follows:

			2025						2024						% Change
			(GWh)
Residential			8,784						7,758						13
Commercial			6,243						6,223						—
Industrial			13,833						12,661						9
Governmental			560						572						(2)
Total retail			29,420						27,214						8
Sales for resale			1,634						3,958						(59)
Total			31,054						31,172						—

See Note 12 to the financial statements herein for additional discussion of operating revenues.

Other Income Statement Items

Utility

Other operation and maintenance expenses decreased from $681 million for the first quarter 2024 to $662 million for the first quarter 2025 primarily due to contract costs of $12 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives and a decrease of $8 million in compensation and benefits costs primarily due to a higher revision to estimated incentive-based compensation expense in first quarter 2025 as compared to first quarter 2024.

Asset write-offs, impairments, and related charges (credits) includes a $132 million charge to reflect the write-off, at Entergy Arkansas, of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates at Entergy Louisiana effective September 2024 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. The increase was partially offset by the recognition of $14 million in depreciation expense in first quarter 2024 at Entergy Texas for the 2022 base rate case relate back period, effective over six months beginning January 2024. The recognition of depreciation expense for the relate back period was effective over the same period as collections from the relate back surcharge rider and resulted in no effect on net income. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the 2022 base rate case at Entergy Texas.

Other regulatory charges (credits) - net includes a regulatory charge of $78 million, recorded by Entergy New Orleans in first quarter 2024, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit. See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and for discussion of the resolution of the 2016-2018 IRS audit. In addition, Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income decreased primarily due to changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in first quarter 2024, partially offset by an increase in the

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

allowance for equity funds used during construction due to higher construction work in progress in 2025 and an increase in the amortization of tax gross ups on customer advances for construction.

Interest expense increased primarily due to:

• the issuances by Entergy Arkansas of $400 million of 5.75% Series mortgage bonds and $400 million of 5.45% Series mortgage bonds, each in May 2024;

• the issuance by Entergy Louisiana of $700 million of 5.15% Series mortgage bonds in August 2024;

• the issuance by Entergy Louisiana of $750 million of 5.80% Series mortgage bonds in January 2025;

• the issuance by Entergy Mississippi of $300 million of 5.85% Series mortgage bonds in May 2024;

• the issuance by Entergy Texas of $350 million of 5.55% Series mortgage bonds in August 2024;

• the issuance by System Energy of $300 million of 5.30% Series mortgage bonds in December 2024; and

• carrying costs on customer advances for construction.

Income Taxes

The effective income tax rate was 21.6% for the first quarter 2025. The difference in the effective income tax rate for the first quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

The effective income tax rate was 21.5% for the first quarter 2024. The difference in the effective income tax rate for the first quarter 2024 versus the federal statutory rate of 21% was primarily due to the amortization of state accumulated deferred income taxes as a result of tax rate changes, a provision for uncertain tax positions, and the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation.

Entergy Wholesale Commodities Exit from the Merchant Power Business

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Entergy Wholesale Commodities Exit from the Merchant Power Business” in the Form 10-K for discussion of the exit from the merchant power business.

Liquidity and Capital Resources

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy’s capital structure, capital spending plans and other uses of capital, and sources of capital. The following are updates to that discussion.

Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy’s ability to make planned capital investments as and when expected and needed; legal uncertainties, such as potential legal or other challenges to presidential tariff authority; or broader economic risks, including shifting customer demand, impacts on customer investment decisions, and volatile or uncertain credit and capital markets, which may affect Entergy’s ability to access needed capital. The nature and extent of any such

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

effects will depend on, among other things, the specifics of the changes that are ultimately implemented both domestically and internationally, the responses of vendors, suppliers, and other counterparties to those changes, indirect effects on the price and availability of non-tariffed goods, and the effectiveness of mitigation measures.

Capital Structure and Resources

Entergy’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio is primarily due to the net issuance of long-term debt in 2025.

			March 31, 2025						December 31, 2024
Debt to capital			66.7		%				65.3		%
Effect of excluding securitization bonds			(0.2		%)				(0.2		%)
Debt to capital, excluding securitization bonds (non-GAAP) (a)			66.5		%				65.1		%
Effect of subtracting cash			(1.1		%)				(0.7		%)
Net debt to net capital, excluding securitization bonds (non-GAAP) (a)			65.4		%				64.4		%

(a)Calculation excludes the Texas securitization bonds, which are non-recourse to Entergy Texas.

As of March 31, 2025, 21.1% of the debt outstanding is at the parent company, Entergy Corporation, and 78.9% is at the Utility. Net debt consists of debt less cash and cash equivalents. Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt, equity, and subsidiaries’ preferred stock without sinking fund. Net capital consists of capital less cash and cash equivalents. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy’s financial condition because the securitization bonds are non-recourse to Entergy, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy also uses the net debt to net capital ratio excluding securitization bonds in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy’s financial condition because net debt indicates Entergy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2029. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. As there were no borrowings under the facility for the three months ended March 31, 2025, the estimated interest rate as of March 31, 2025 that would have been applied to outstanding borrowings under the facility was 5.92%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of March 31, 2025:

Capacity						Borrowings						Letters of Credit						Capacity Available
(In Millions)
$3,000						$—						$4						$2,996

Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above. Entergy is currently in compliance with the covenant and expects to remain in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur. See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’ credit facilities.

Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of March 31, 2025, Entergy Corporation had $1,330 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2025 was 4.66%.

Equity Issuances and Equity Distribution Program

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program” in the Form 10-K and Note 3 to the financial statements herein for discussion of equity issuances and the equity distribution program. The following is an update to that discussion.

In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties. The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. See Note 3 to the financial statements herein for further discussion of the forward sale agreements.

Capital Expenditure Plans and Other Uses of Capital

See the table and discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital,” that sets forth the amounts of Entergy’s planned construction and other capital investments for 2025 through 2027. The following are updates to that discussion.

Other Generation

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.

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

Entergy Louisiana Additional Generation and Transmission Resources

As discussed in the Form 10-K, in October 2024, Entergy Louisiana filed an application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement has been executed. The filing requests LPSC certification of three new combined cycle combustion turbine generation resources totaling 2,262 MW, each of which will be enabled for future carbon capture and storage, a new 500 kV transmission line, and 500 kV substation upgrades. The application also requests approval to implement a corporate sustainability rider applicable to the new customer. The corporate sustainability rider contemplates the new customer contributing to the costs of the future addition of 1,500 MW of new solar and energy storage resources, agreements involving carbon capture and storage at Entergy Louisiana’s existing Lake Charles Power Station, and potential future wind and nuclear resources. Entergy Louisiana anticipates funding the incremental cost to serve the customer through direct financial contributions from the customer and the revenues it expects to earn under the electric service agreement. The electric service agreement also contains provisions for termination payments that will help ensure that there is no harm to Entergy Louisiana and its customers in the event of early termination. A directive was issued at the LPSC’s November 2024 meeting for the matter to be decided by October 2025. In February 2025 intervenors filed a motion asking the LPSC to deny Entergy Louisiana’s requested exemption from the LPSC’s order addressing competitive solicitation procedures and further asking the LPSC to dismiss the application. The ALJ issued an order denying the motion to dismiss the application and deferring the LPSC’s consideration of the motion regarding the competitive solicitation procedures until the hearing. In March 2025 the same intervenors filed a motion requesting the LPSC to require the customer and its parent company to be joined as parties to the proceeding or dismiss the application. In April 2025 the ALJ issued an order denying the March 2025 motion, and the moving parties filed a motion asking the LPSC to review and reverse the ALJ’s decision. In April 2025 the LPSC staff and intervenors filed direct testimony. The LPSC staff’s testimony discusses the significant projected benefits associated with the data center project and also recommends that the LPSC impose certain conditions on its approval, including a condition that would require, under specified circumstances, certain sharing of net revenues from service to the project with Entergy Louisiana’s other customers. The LPSC staff also recommends that the LPSC deny approval of the corporate sustainability rider terms providing for the customer to supply funding toward the cost of installing carbon capture and storage infrastructure at Entergy Louisiana’s Lake Charles Power Station. The Louisiana Energy Users Group and other intervenors recommended that the LPSC require various changes to the terms of the electric service agreement with the customer that would shift additional risk and cost to the customer rather than Entergy Louisiana’s broader customer base. Certain intervenors also challenged approval on the basis that Entergy Louisiana did not conduct a request for proposals to procure the proposed generation resources to serve the customer’s project; these intervenors also advocate that Entergy Louisiana be required to procure more renewable generation and evaluate transmission alternatives rather than proceeding with development of all of the proposed new generation resources. Entergy Louisiana’s rebuttal testimony is due in May 2025, and a hearing is set for July 2025.

Entergy Louisiana Transmission Projects

As discussed in the Form 10-K, in March 2024, Entergy Louisiana filed an application with the LPSC seeking an exemption determination, or alternatively, a certificate of public convenience and necessity, for a transmission project that includes a new 500 kV/230 kV Commodore substation and an approximately 60-mile 230 kV line connecting the new Commodore substation to the Waterford substation. In February 2025, Entergy Louisiana and the LPSC staff jointly filed, for consideration by the LPSC, an uncontested stipulated settlement agreement resolving all issues in the proceeding. The LPSC approved the uncontested stipulated settlement agreement in March 2025 and thereby granted certification of the project.

As discussed in the Form 10-K, in December 2024, Entergy Louisiana filed an application with the LPSC seeking a certificate of public convenience and necessity for a 500 kV transmission project that includes the construction of a new 84-mile Commodore to Churchill 500 kV transmission line, the expansion of the Waterford

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

500 kV substation, the construction of a new Churchill 500 kV substation and improvements to the Churchill 230 kV substation, and the conversion of the existing 230 kV Waterford to Churchill transmission line to 500 kV, forming a 500 kV loop into the Downstream of Gypsy load pocket. In April 2025 the LPSC staff and the Louisiana Energy Users Group, an intervenor, filed direct testimony. The LPSC staff’s testimony recommends LPSC approval of the project. The Louisiana Energy Users Group’s testimony opines that Entergy Louisiana has shown that there is a need for additional transmission investment in the West Bank area of Amite South but recommends that the LPSC withhold approval pending further analysis, including analysis of potential lower cost alternatives to the proposed project, and also pending Entergy Louisiana demonstrating that it has contributions in aid of construction from the customers whose block load additions would be enabled by the proposed transmission project in amounts sufficient to substantially, if not fully, cover the revenue requirement of the proposed project. Discovery is ongoing in the proceeding, and a hearing is set for August 2025.

Legend Power Station and Lone Star Power Station

As discussed in the Form 10-K, in June 2024, Entergy Texas filed an application seeking PUCT approval to amend Entergy Texas’s certificate of convenience and necessity to construct, own, and operate the Legend Power Station, a 754 MW combined-cycle combustion turbine facility, which will be enabled for future carbon capture and storage and for hydrogen co-firing optionality, to be located in Jefferson County, Texas, and the Lone Star Power Station, a 453 MW simple-cycle combustion turbine facility, which will be enabled with hydrogen co-firing optionality, to be located in Liberty County, Texas. A hearing on the merits was held in April 2025. Also in April 2025, Entergy Texas, intervenors, and the PUCT staff filed initial briefs. In its initial brief, the PUCT staff recommends denial of Entergy Texas’s application or, in the alternative, approval subject to conditions that include a prudence review by an external consultant if actual project costs exceed estimated costs by more than 10%, transmission cost reporting, and weatherization of both the Legend Power Station and the Lone Star Power Station. Certain intervenors requested that the PUCT impose various conditions upon the approval of the resources, including, among others, cost recovery limitations, a direction that Entergy Texas initiate a competitive tariff proceeding to facilitate industrial sleeving, a requirement for additional regulatory approvals related to hydrogen or carbon capture and storage implementation, limits on the recovery of supplemental filing costs, and calculation of AFUDC based on an adjusted weighted average cost of capital. Reply briefs are due in May 2025. A PUCT decision is expected in third quarter 2025. Subject to receipt of required regulatory approval and other conditions, both facilities are expected to be in service by mid-2028.

SETEX Area Reliability Project

In February 2025, Entergy Texas filed an application seeking PUCT approval to amend Entergy Texas’s certificate of convenience and necessity to construct, own, and operate a new single-circuit 500 kV transmission line and associated stations and 138/230 kV facilities. The transmission line is expected to be approximately 131 to 160 miles in length and the estimated cost of the project ranges from $1.3 billion to $1.5 billion, depending upon the route ultimately approved by the PUCT. Also in February 2025 the PUCT referred the proceeding to the State Office of Administrative Hearings. In March 2025 the ALJs with the State Office of Administrative Hearings adopted a procedural schedule with a hearing on the merits to be held in May 2025. A PUCT decision is expected in third quarter 2025. Subject to receipt of required regulatory approval and other conditions and approvals, construction of the project is expected to be completed by the end of 2029.

Dividends

Declarations of dividends on Entergy Corporation common stock are made at the discretion of the Board. Among other things, the Board evaluates the level of Entergy Corporation common stock dividends based upon earnings per share from the Utility segment and the Parent and Other portion of the business, financial strength, and future investment opportunities. In April 2025, the Board declared a dividend of $0.60 per share.

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

Cash Flow Activity

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the three months ended March 31, 2025 and 2024 were as follows:

			2025						2024
			(In Millions)
Cash and cash equivalents at beginning of period			$860						$133
Net cash provided by (used in):
Operating activities			536						521
Investing activities			(1,711)						(1,288)
Financing activities			1,828						1,929
Net increase in cash and cash equivalents			653						1,162
Cash and cash equivalents at end of period			$1,513						$1,295

Operating Activities

Net cash flow provided by operating activities increased $15 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the timing of payments to vendors and the receipt of $108 million in advance payments related to customer agreements. The increase was offset by higher fuel and purchased power payments, an increase of $89 million in interest paid, and the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery.

Investing Activities

Net cash flow used in investing activities increased $423 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:

• an increase of $502 million in non-nuclear generation construction expenditures primarily due to higher spending by Entergy Louisiana on new generation resources in north Louisiana, by Entergy Mississippi on the Delta Blues Advanced Power Station project and the Penton Solar project, and by Entergy Texas on the Orange County Advanced Power Station project and the Legend Power Station project;

• an increase of $144 million in distribution construction expenditures primarily due to increased investment in the resilience of the Utility distribution system and higher capital expenditures for storm restoration in 2025. The increase in storm restoration expenditures is primarily due to Hurricane Francine restoration efforts in 2025;

• an increase of $83 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2025; and

• an increase of $64 million in transmission construction expenditures primarily due to increased spending on various transmission projects in 2025.

The increase was partially offset by:

• the initial payment of approximately $170 million in February 2024 for the purchase of the Walnut Bend Solar facility by Entergy Arkansas;

• a decrease of $113 million in information technology capital expenditures primarily due to decreased spending on various technology projects in 2025;

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

• a decrease of $45 million in nuclear fuel purchases due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and

• net receipts from storm reserve escrow accounts of $39 million in 2025 compared to payments to storm reserve escrow accounts of $5 million in 2024.

See Note 14 to the financial statements in the Form 10-K for discussion of the Walnut Bend Solar facility purchase.

Financing Activities

Net cash flow provided by financing activities decreased $101 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to a decrease of $373 million in net issuances of commercial paper in 2025 as compared to 2024, partially offset by long-term debt activity providing approximately $1,595 million of cash in 2025 compared to providing approximately $1,371 million of cash in 2024 and an increase of $48 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements. See Note 4 to the financial statements herein and Notes 4 and 5 to the financial statements in the Form 10-K for details of Entergy’s commercial paper program and long-term debt.

Rate, Cost-recovery, and Other Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings.

State and Local Rate Regulation and Fuel-Cost Recovery

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings.

Federal Regulation

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings.

Market and Credit Risk Sensitive Instruments

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Market and Credit Risk Sensitive Instruments” in the Form 10-K for a discussion of market and credit risk sensitive instruments. The following is an update to that discussion.

Some of the agreements to sell the power produced by Entergy’s non-utility operations business contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under such agreements. The primary form of credit support used to satisfy these requirements is an Entergy Corporation guarantee. Cash and letters of credit are also acceptable forms of credit support. At March 31, 2025, based on power prices at that time, Entergy had no liquidity exposure under the guarantees in place supporting its non-utility operations business transactions and $3 million of posted cash collateral.

Nuclear Matters

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.

Entergy Corporation and Subsidiaries

Management’s Financial Discussion and Analysis

Critical Accounting Estimates

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

New Accounting Pronouncements

See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements. The following is an update to that discussion.

As discussed in the Form 10-K, in March 2024 the SEC issued final rules that require registrants to provide certain climate-related disclosures in annual reports and registration statements in order to enhance and standardize climate-related disclosures for investors. In April 2024 the SEC stayed the final rules, pending judicial review of consolidated challenges to the rules by the United States Court of Appeals for the Eighth Circuit. In March 2025, the SEC voted to end its defense of the final rules against parties that have legally challenged the rules. Entergy will continue to monitor developments related to the SEC’s stay of, and subsequent vote to end its defense in litigation of, the rules.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
															2025						2024
															(In Thousands, Except Share Data)
OPERATING REVENUES
Electric															$2,757,866						$2,706,506
Natural gas															71,731						65,667
Other															17,277						22,455
TOTAL															2,846,874						2,794,628
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale															344,522						616,617
Purchased power															345,746						228,142
Nuclear refueling outage expenses															33,041						38,263
Other operation and maintenance															672,667						687,031
Asset write-offs, impairments, and related charges (credits)															—						131,775
Decommissioning															55,929						53,382
Taxes other than income taxes															198,765						192,429
Depreciation and amortization															512,943						499,661
Other regulatory charges (credits) - net															(16,843)						109,346
TOTAL															2,146,770						2,556,646
OPERATING INCOME															700,104						237,982
OTHER INCOME
Allowance for equity funds used during construction															44,018						26,794
Interest and investment income															33,406						150,697
Miscellaneous - net															14,726						(50,743)
TOTAL															92,150						126,748
INTEREST EXPENSE
Interest expense															348,384						277,743
Allowance for borrowed funds used during construction															(18,593)						(10,543)
TOTAL															329,791						267,200
INCOME BEFORE INCOME TAXES															462,463						97,530
Income taxes															100,041						20,994
CONSOLIDATED NET INCOME															362,422						76,536
Preferred dividend requirements of subsidiaries and noncontrolling interests															1,662						1,255
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION															$360,760						$75,281
Earnings per average common share:
Basic															$0.84						$0.18
Diluted															$0.82						$0.18
Basic average number of common shares outstanding															430,347,768						426,287,439
Diluted average number of common shares outstanding															440,648,342						427,746,256
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
															2025						2024
															(In Thousands)
Net Income															$362,422						$76,536
Other comprehensive loss
Pension and other postretirement plan changes (net of tax benefit of $2,284 and $1,202)															(3,729)						(3,668)
Other comprehensive loss															(3,729)						(3,668)
Comprehensive Income															358,693						72,868
Preferred dividend requirements of subsidiaries and noncontrolling interests															1,662						1,255
Comprehensive Income Attributable to Entergy Corporation															$357,031						$71,613
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
						2025						2024
						(In Thousands)
OPERATING ACTIVITIES
Consolidated net income						$362,422						$76,536
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization						622,566						600,412
Deferred income taxes, investment tax credits, and non-current taxes accrued						94,973						(20,656)
Asset write-offs, impairments, and related charges (credits)						—						131,775
Changes in working capital:
Receivables						51,477						107,921
Fuel inventory						3,261						5,387
Accounts payable						(189,497)						(287,418)
Taxes accrued						(95,589)						(64,085)
Interest accrued						11,595						29,615
Deferred fuel costs						(277,236)						92,685
Other working capital accounts						111,305						(73,315)
Changes in provisions for estimated losses						(34,239)						9,283
Changes in other regulatory assets						154,818						237,098
Changes in other regulatory liabilities						(201,803)						205,587
Changes in pension and other postretirement funded status						(58,834)						(76,343)
Other						(19,031)						(453,390)
Net cash flow provided by operating activities						536,188						521,092
INVESTING ACTIVITIES
Construction/capital expenditures						(1,660,169)						(961,152)
Allowance for equity funds used during construction						44,018						26,794
Nuclear fuel purchases						(88,557)						(133,315)
Payment for purchase of plant and assets						(1,282)						(172,614)
Changes in securitization account						(5,438)						(8,934)
Payments to storm reserve escrow accounts						(4,448)						(5,269)
Receipts from storm reserve escrow accounts						43,789						—
Decrease (increase) in other investments						472						(1,562)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs						3,546						—
Proceeds from nuclear decommissioning trust fund sales						364,837						489,417
Investment in nuclear decommissioning trust funds						(407,146)						(521,237)
Net cash flow used in investing activities						(1,710,378)						(1,287,872)
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
						2025						2024
						(In Thousands)
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt						2,447,850						2,206,338
Treasury stock						22,660						6,759
Retirement of long-term debt						(852,754)						(835,740)
Changes in commercial paper - net						402,694						775,333
Other						70,276						21,940
Dividends paid:
Common stock						(258,249)						(240,959)
Preferred stock						(4,580)						(4,580)
Net cash flow provided by financing activities						1,827,897						1,929,091
Net increase in cash and cash equivalents						653,707						1,162,311
Cash and cash equivalents at beginning of period						859,703						132,548
Cash and cash equivalents at end of period						$1,513,410						$1,294,859
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized						$326,519						$237,931
Income taxes						($1,252)						($316)
Noncash investing activities:
Accrued construction expenditures						$657,132						$509,046
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, 2025 and December 31, 2024
(Unaudited)
						2025						2024
						(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash						$69,157						$48,424
Temporary cash investments						1,444,253						811,279
Total cash and cash equivalents						1,513,410						859,703
Accounts receivable:
Customer						741,254						681,504
Allowance for doubtful accounts						(17,638)						(17,919)
Other						154,986						204,868
Accrued unbilled revenues						460,320						521,946
Total accounts receivable						1,338,922						1,390,399
Deferred fuel costs						125,490						—
Fuel inventory - at average cost						164,134						166,408
Materials and supplies						1,539,551						1,631,056
Deferred nuclear refueling outage costs						98,324						99,885
Current assets held for sale						15,898						15,574
Prepayments and other						316,659						233,212
TOTAL						5,112,388						4,396,237
OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds						5,446,731						5,562,575
Non-utility property - at cost (less accumulated depreciation)						467,020						423,764
Storm reserve escrow accounts						300,269						340,460
Other						82,896						82,344
TOTAL						6,296,916						6,409,143
PROPERTY, PLANT, AND EQUIPMENT
Electric						71,237,319						70,818,667
Natural gas						77,529						77,054
Construction work in progress						4,422,150						3,206,308
Nuclear fuel						728,969						765,661
TOTAL PROPERTY, PLANT, AND EQUIPMENT						76,465,967						74,867,690
Less - accumulated depreciation and amortization						27,792,637						27,444,740
PROPERTY, PLANT, AND EQUIPMENT - NET						48,673,330						47,422,950
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets (includes securitization property of $230,065 as of March 31, 2025 and $234,112 as of December 31, 2024)						5,101,032						5,255,509
Deferred fuel costs						172,201						172,201
Goodwill						367,696						367,625
Accumulated deferred income taxes						25,759						18,986
Non-current assets held for sale						467,215						462,797
Other						403,872						284,584
TOTAL						6,537,775						6,561,702
TOTAL ASSETS						$66,620,409						$64,790,032
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
March 31, 2025 and December 31, 2024
(Unaudited)
						2025						2024
						(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt						$1,330,112						$1,378,090
Notes payable and commercial paper						1,329,985						927,291
Accounts payable						1,809,891						1,929,162
Customer deposits						468,584						462,436
Taxes accrued						360,233						457,093
Interest accrued						271,149						259,554
Deferred fuel costs						85,110						237,146
Pension and other postretirement liabilities						63,156						64,854
Other						482,035						395,411
TOTAL						6,200,255						6,111,037
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued						4,586,943						4,467,748
Accumulated deferred investment tax credits						191,997						194,146
Regulatory liability for income taxes - net						1,148,896						1,168,078
Other regulatory liabilities						3,425,277						3,609,463
Decommissioning and asset retirement cost liabilities						4,765,021						4,713,426
Accumulated provisions						471,824						506,063
Pension and other postretirement liabilities						215,740						254,704
Long-term debt (includes securitization bonds of $239,713 as of March 31, 2025 and $239,622 as of December 31, 2024)						28,264,879						26,613,505
Customer advances for construction						696,502						634,587
Other						1,151,265						1,112,881
TOTAL						44,918,344						43,274,601
Commitments and Contingencies
Subsidiaries’ preferred stock without sinking fund						219,410						219,410
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares in 2025 and 2024; issued shares in 2025 and 2024 - none						—						—
Common stock, $0.01 par value, authorized 998,000,000 shares in 2025 and 2024; issued 561,950,696 shares in 2025 and 2024						5,620						5,620
Paid-in capital						7,792,748						7,833,525
Retained earnings						12,116,826						12,014,315
Accumulated other comprehensive income						39,040						42,769
Less - treasury stock, at cost (131,176,587 shares in 2025 and 132,370,280 shares in 2024)						4,768,923						4,812,321
Total shareholders**’** equity						15,185,311						15,083,908
Subsidiaries’ preferred stock without sinking fund and noncontrolling interests						97,089						101,076
TOTAL						15,282,400						15,184,984
TOTAL LIABILITIES AND EQUITY						$66,620,409						$64,790,032
See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
									Shareholders’ Equity
			Subsidiaries’ Preferred Stock and Noncontrolling Interests						Common Stock						Treasury Stock						Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total
			(In Thousands)
Balance at December 31, 2023			$120,459						$5,620						($4,953,498)						$7,792,601						$11,940,384						($162,460)						$14,743,106
Consolidated net income (a)			1,255						—						—						—						75,281						—						76,536
Other comprehensive loss			—						—						—						—						—						(3,668)						(3,668)
Common stock issuances related to stock plans			—						—						30,881						(25,842)						—						—						5,039
Common stock dividends declared			—						—						—						—						(240,959)						—						(240,959)
Distributions to noncontrolling interests			(1,108)						—						—						—						—						—						(1,108)
Preferred dividend requirements of subsidiaries (a)			(4,580)						—						—						—						—						—						(4,580)
Balance at March 31, 2024			$116,026						$5,620						($4,922,617)						$7,766,759						$11,774,706						($166,128)						$14,574,366
Balance at December 31, 2024			$101,076						$5,620						($4,812,321)						$7,833,525						$12,014,315						$42,769						$15,184,984
Consolidated net income (a)			1,662						—						—						—						360,760						—						362,422
Other comprehensive loss			—						—						—						—						—						(3,729)						(3,729)
Common stock issuances related to stock plans			—						—						43,398						(40,777)						—						—						2,621
Common stock dividends declared			—						—						—						—						(258,249)						—						(258,249)
Distributions to noncontrolling interests			(1,069)						—						—						—						—						—						(1,069)
Preferred dividend requirements of subsidiaries (a)			(4,580)						—						—						—						—						—						(4,580)
Balance at March 31, 2025			$97,089						$5,620						($4,768,923)						$7,792,748						$12,116,826						$39,040						$15,282,400
See Notes to Financial Statements.
(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2025 and first quarter 2024 each includes $4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity.

ENTERGY CORPORATION AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory authorities, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein.

Vidalia Purchased Power Agreement

See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement.

Spent Nuclear Fuel Litigation

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. The following is an update to that discussion.

As discussed in the Form 10-K, in October 2024 the U.S. Court of Federal Claims issued a final judgment in the amount of $7 million in favor of Holtec Palisades, LLC (previously Entergy Nuclear Palisades) and against the DOE in the final round Palisades damages case. Holtec, as the current owner, received payment from the U.S. Treasury in March 2025 and subsequently transferred the $7 million judgment to Entergy. The effect in 2024 of recording the judgment was a reduction to asset write-offs, impairments, and related charges (credits). The damages awarded included $4 million related to costs previously recorded as plant and $3 million related to costs previously recorded as other operation and maintenance expenses.

Nuclear Insurance

See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants.

Non-Nuclear Property Insurance

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program.

Employment and Labor-related Proceedings

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings.

Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas)

See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Grand Gulf-Related Agreements

See Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements, including the Unit Power Sales Agreement, the Availability Agreement, and the Reallocation Agreement.

Exclusivity Agreement with Major Vendor

Entergy entered into an exclusivity agreement with a major vendor to manufacture power island equipment (PIE) and combustion turbines (CT) for combustion turbine generator set frames larger than 400 MWs. The agreement guarantees Entergy one manufacturing slot per quarter for the shorter of a five-year period or until Entergy fulfills its minimum commitment. The agreement commits Entergy to a minimum order of 15 sets of PIE and two CTs during that time period. The commitments are fully transferable to any of the Utility operating companies, including those not listed below. The aggregate minimum commitment as allocated by unit among the Utility operating companies is as follows:

			PIE						CT
Entergy Arkansas			4						1
Entergy Louisiana			9						—
Entergy Mississippi			2						—
Entergy Texas			—						1
Total			15						2

Cancellation or failure to purchase the minimum commitment amounts will result in a charge that will be allocated to the Utility operating company, or companies, that fell short of their original commitment amount. If any of the Utility operating companies included above purchases any PIEs or CTs within the scope of the agreement from another supplier (except as permitted under the agreement), then the vendor has the right to terminate the agreement with respect to such Utility operating company. The Utility operating company would then be obligated to pay 50% of the base price for each PIE or CT not yet ordered.

The agreement does not establish final pricing and delivery dates of purchases that will go towards meeting the commitments under the agreement. Such terms shall be agreed to in separate agreements.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

NOTE 2. RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Regulatory Assets and Regulatory Liabilities

See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion.

Fuel and purchased power cost recovery

Entergy Arkansas

Energy Cost Recovery Rider

In March 2025, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.00882 per kWh to $0.01333 per kWh. The annual redetermination included a credit related to the remaining balance due to retail customers from the System Energy settlement with the APSC, plus carrying charges and interest. See “Retail Rate Proceedings - Filings with the APSC (Entergy Arkansas) - Retail Rates - Grand Gulf Credit Rider” below for further discussion. The primary reason for the rate increase is an adjustment to account for projected increases in natural gas prices in 2025. This adjustment is expected to reduce the rate change that will be reflected in its 2026 energy cost rate redetermination. The redetermined rate of $0.01333 per kWh became effective with the first billing cycle in April 2025 through the normal operation of the tariff.

Entergy Louisiana

As discussed in the Form 10-K, in January 2023 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from 2021 through 2022. In April 2025 the LPSC staff issued its audit report (for Entergy Louisiana’s gas operations), which included several prospective recommendations but no financial disallowances. The next procedural step is for the LPSC to review the report; however there is no deadline for completion of the LPSC’s review.

Retail Rate Proceedings

See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that discussion.

Filings with the APSC (Entergy Arkansas)

Retail Rates

Grand Gulf Credit Rider

As discussed in the Form 10-K, in June 2024, Entergy Arkansas filed with the APSC a tariff to provide retail customers a credit resulting from the terms of the settlement agreement between Entergy Arkansas, System Energy, additional named Entergy parties, and the APSC pertaining to System Energy’s billings for wholesale sales of energy and capacity from the Grand Gulf nuclear plant. See “Complaints Against System Energy - System Energy Settlement with the APSC” in Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC. In July 2024 the APSC approved the tariff, under which Entergy Arkansas would refund to retail customers a total of $100.6 million. Entergy Arkansas refunded $92.3 million of

Entergy Corporation and Subsidiaries

Notes to Financial Statements

the total through one-time bill credits under the Grand Gulf credit rider during the August 2024 billing cycle. In March 2025, Entergy Arkansas included the remaining balance as a credit to retail customers in its energy cost recovery rider rate redetermination filing. See further discussion within "Regulatory Assets and Regulatory Liabilities - Fuel and purchased power cost recovery - Entergy Arkansas - Energy Cost Recovery Rider" above. In April 2025 the APSC approved Entergy Arkansas’s proposal to include the remaining balance in its energy cost recovery rider effective with the first billing cycle of April 2025 and the withdrawal of the Grand Gulf credit rider after all credits have been issued.

Filings with the LPSC (Entergy Louisiana)

Retail Rates - Electric

2023 Formula Rate Plan Filing

As discussed in the Form 10-K, in 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 are 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. 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. In March 2025 the LPSC issued an order accepting the evaluation report.

In December 2024, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed an interim rate adjustment for the 2023 test year reflecting the return of $25.1 million of refunds from the System Energy settlement with the LPSC to customers from January through August 2025. In February 2025, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting the divestiture of Entergy Louisiana’s share of Grand Gulf capacity and energy, which was effective as of January 1, 2025. The second interim rate adjustment also reflected a revenue increase of $17.8 million for the recovery of Hurricane Francine costs as approved by the LPSC (on an interim basis). The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the Hurricane Francine proceeding in “Storm Cost Recovery Filings with Retail Regulators – Entergy Louisiana – Hurricane Francine” below. See Note 8 to the financial statements in the Form 10-K for discussion of Entergy Louisiana’s divestiture from the Unit Power Sales Agreement.

Additional Generation and Transmission Resources

As discussed in the Form 10-K, in October 2024, Entergy Louisiana filed an application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement has been executed. The filing requests LPSC certification of three new combined cycle combustion turbine generation resources totaling 2,262 MW, each of which will be enabled for future carbon capture and storage, a new 500 kV transmission line, and 500 kV substation upgrades. The application also requests approval to implement a corporate sustainability rider applicable to the new customer. The corporate sustainability rider contemplates the new customer contributing to the costs of the future addition of 1,500 MW of new solar and energy storage resources, agreements involving carbon capture and storage at Entergy Louisiana’s existing Lake Charles Power Station, and potential future wind and nuclear resources. Entergy Louisiana anticipates funding the incremental cost to serve the customer through direct financial contributions from the customer and the revenues it expects to earn under the electric service agreement. The electric service agreement also contains provisions for termination payments that will help ensure that there is no harm to Entergy Louisiana and its customers in the event

Entergy Corporation and Subsidiaries

Notes to Financial Statements

of early termination. A directive was issued at the LPSC’s November 2024 meeting for the matter to be decided by October 2025. In February 2025 intervenors filed a motion asking the LPSC to deny Entergy Louisiana’s requested exemption from the LPSC’s order addressing competitive solicitation procedures and further asking the LPSC to dismiss the application. The ALJ issued an order denying the motion to dismiss the application and deferring the LPSC’s consideration of the motion regarding the competitive solicitation procedures until the hearing. In March 2025 the same intervenors filed a motion requesting the LPSC to require the customer and its parent company to be joined as parties to the proceeding or dismiss the application. In April 2025 the ALJ issued an order denying the March 2025 motion, and the moving parties filed a motion asking the LPSC to review and reverse the ALJ’s decision. In April 2025 the LPSC staff and intervenors filed direct testimony. The LPSC staff’s testimony discusses the significant projected benefits associated with the data center project and also recommends that the LPSC impose certain conditions on its approval, including a condition that would require, under specified circumstances, certain sharing of net revenues from service to the project with Entergy Louisiana’s other customers. The LPSC staff also recommends that the LPSC deny approval of the corporate sustainability rider terms providing for the customer to supply funding toward the cost of installing carbon capture and storage infrastructure at Entergy Louisiana’s Lake Charles Power Station. The Louisiana Energy Users Group and other intervenors recommended that the LPSC require various changes to the terms of the electric service agreement with the customer that would shift additional risk and cost to the customer rather than Entergy Louisiana’s broader customer base. Certain intervenors also challenged approval on the basis that Entergy Louisiana did not conduct a request for proposals to procure the proposed generation resources to serve the customer’s project; these intervenors also advocate that Entergy Louisiana be required to procure more renewable generation and evaluate transmission alternatives rather than proceeding with development of all of the proposed new generation resources. Entergy Louisiana’s rebuttal testimony is due in May 2025, and a hearing is set for July 2025.

Filings with the MPSC (Entergy Mississippi)

Retail Rates

2025 Formula Rate Plan Filing

In February 2025, Entergy Mississippi submitted its formula rate plan 2025 test year filing and 2024 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2024 calendar year to be within the formula rate plan bandwidth and projected earned return for the 2025 calendar year to also be within the formula rate plan bandwidth. The 2025 test year filing resulted in an earned return on rate base of 7.64% and reflected no change in formula rate plan revenues. The 2024 look-back filing compared actual 2024 results to the approved benchmark return on rate base and reflected no change in formula rate plan revenues, although Entergy Mississippi proposes to adjust interim rates by $135 thousand to reflect two outside-the-bandwidth changes: (1) the completion of Entergy Mississippi’s return to customers of credits under its restructuring credit rider; and (2) a true-up of demand side management costs. A final order is expected in second quarter 2025.

Interim Facilities Rate Adjustments

In May 2024, Entergy Mississippi received approval from the MPSC for formula rate plan revisions that were necessary for Entergy Mississippi to comply with state legislation passed in January 2024. The legislation allows Entergy Mississippi to make interim rate adjustments to recover the non-fuel related annual ownership cost of certain facilities that directly or indirectly provide service to customers who own certain data processing center projects as specified in the legislation. Entergy Mississippi filed the first of its annual interim facilities rate adjustment reports in May 2024 to recover approximately $8.7 million of these costs over a six-month period with rates effective beginning in July 2024. Entergy Mississippi filed its second interim facilities rate adjustment report in November 2024 to recover approximately $46.7 million of these costs over a 12-month period with rates effective beginning in January 2025. In February 2025, Entergy Mississippi filed a true-up interim facilities rate adjustment report to the initial annual interim facilities rate adjustment report filed in May 2024, reflecting the recovery of an

Entergy Corporation and Subsidiaries

Notes to Financial Statements

additional approximately $1.0 million of costs over a 12-month period with rates effective with the first billing cycle of April 2025.

Filings with the City Council (Entergy New Orleans)

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.

Filings with the PUCT and Texas Cities (Entergy Texas)

Retail Rates

Distribution Cost Recovery Factor (DCRF) Rider

In April 2025, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The proposed rider is designed to collect from Entergy Texas’s retail customers approximately $77.8 million annually, or $29.3 million in incremental annual revenues beyond Entergy Texas’s currently effective DCRF rider based on its capital invested in distribution between July 1, 2024 and December 31, 2024, including distribution-related restoration costs associated with Hurricane Beryl.

Transmission Cost Recovery Factor (TCRF) Rider

As discussed in the Form 10-K, in October 2024, Entergy Texas filed with the PUCT a request to amend its TCRF rider, which was previously reset to zero in June 2023 as a result of the 2022 base rate case. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $9.7 million annually based on its capital invested in transmission between January 1, 2022 and June 30, 2024 and changes in other transmission charges. In April 2025 the PUCT approved the TCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after April 7, 2025.

Entergy Arkansas Opportunity Sales Proceeding

As discussed in the Form 10-K, in September 2020, Entergy Arkansas filed a complaint in the U.S. District Court for the Eastern District of Arkansas challenging the APSC’s denial of recovery of $135 million of payments to other Utility operating companies in December 2018 relating to off-system sales of electricity from 2002-2009, as ordered by the FERC. The complaint also involved a challenge to the $13.7 million, plus interest, of related refunds ordered by the APSC and paid by Entergy Arkansas in August 2020. The trial was held in February 2023.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

In March 2024 the U.S. District Court for the Eastern District of Arkansas issued a judgment in favor of the APSC and against Entergy Arkansas. In March 2024 Entergy Arkansas filed a notice of appeal and a motion to expedite oral arguments with the United States Court of Appeals for the Eighth Circuit and the court granted the motion to expedite. As a result of the adverse decision by the U.S. District Court for the Eastern District of Arkansas, Entergy Arkansas concluded that it could no longer support the recognition of its $131.8 million regulatory asset reflecting the previously-expected recovery of a portion of the costs at issue in the opportunity sales proceeding and recorded a $131.8 million ($99.1 million net-of-tax) charge to earnings in first quarter 2024. In December 2024 the United States Court of Appeals for the Eighth Circuit affirmed the decision of the U.S. District Court for the Eastern District of Arkansas, and Entergy Arkansas filed a petition for rehearing en banc. In January 2025 the United States Court of Appeals for the Eighth Circuit denied Entergy Arkansas’s petition. In April 2025, Entergy Arkansas filed a petition for certiorari with the United States Supreme Court.

MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding

See Note 2 to the financial statements in the Form 10-K for discussion of the MSS-4 replacement tariff net operating loss carryforward proceeding.

The MSS-4 replacement tariff, a tariff governing the sales of energy and capacity among the Utility operating companies, includes protocols that provide for the disclosure of cost inputs, an opportunity for informal discovery procedures, and a challenge process. In April 2025, pursuant to such protocols, the City Council filed with the FERC a formal challenge relating to Entergy Services’ inclusion and allocation of net operating loss carryforward accumulated deferred income taxes in the MSS-4 replacement tariff rates charged to Entergy New Orleans’s monthly bills for calendar year 2023. Entergy Services plans to file a response to the formal challenge by the May 2025 deadline.

Complaints Against System Energy

See Note 2 to the financial statements in the Form 10-K for information regarding pending complaints against System Energy and the settlements approved by the FERC that resolved all significant aspects of these complaints. The following is an update to that discussion.

Grand Gulf Sale-leaseback Renewal Complaint and Uncertain Tax Position Rate Base Issue

As discussed in the Form 10-K, in February 2023, System Energy submitted a tariff compliance filing with the FERC to clarify that, consistent with the releases provided in the June 2022 MPSC settlement, Entergy Mississippi would continue to be charged for its allocation of the sale-leaseback renewal costs under the Unit Power Sales Agreement. In March 2023 the MPSC filed a protest to System Energy’s tariff compliance filing. The MPSC argued that the settlement did not specifically address post-settlement sale-leaseback renewal costs and that the sale-leaseback renewal costs may not be recovered under the Unit Power Sales Agreement. In February 2025, System Energy and the MPSC resolved their dispute concerning the sale-leaseback renewal costs. As a result, the MPSC withdrew its protest at the FERC on System Energy’s tariff compliance filing. Entergy Mississippi will continue to pay the allocated sale-leaseback renewal costs of approximately $5.7 million annually and there are no refunds due for prior periods. In March 2025, System Energy filed a status report with the FERC explaining that the dispute is resolved.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Storm Cost Recovery Filings with Retail Regulators

See Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings. The following is an update to that discussion.

Entergy Louisiana

Hurricane Francine

In September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana. The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.

In December 2024, and subsequently amended in an errata filed in February 2025, Entergy Louisiana submitted an application to the LPSC seeking a determination that approximately $183.6 million in storm restoration costs associated with Hurricane Francine were reasonable and necessary and, therefore, eligible for recovery from customers, as well as approval to recover approximately $3.6 million in certain carrying costs from customers. In February 2025, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting a revenue increase of $17.8 million from funds approved by the LPSC (on an interim basis) for Hurricane Francine recovery costs. The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the 2023 formula rate plan filing above. Also in February 2025, Entergy Louisiana withdrew $33.5 million from its funded storm reserves. In March 2025 a status conference was held in which a procedural schedule was established including a hearing in November 2025.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

NOTE 3. EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings per Share

Historical share and share-based data presented in the accompanying financial statements has been retroactively adjusted to reflect the two-for-one forward stock split of Entergy Corporation common stock effective December 12, 2024. See Note 7 to the financial statements in the Form 10-K for discussion of the stock split.

The following table presents Entergy’s basic and diluted earnings per share calculations for the three months ended March 31, 2025 and 2024, included on the consolidated income statements:

			For the Three Months Ended March 31,
			2025												2024
			(Dollars In Thousands, Except Per Share Data; Shares in Millions)
									$/share												$/share
Consolidated net income			$362,422												$76,536
Less: Preferred dividend requirements of subsidiaries and noncontrolling interests			1,662												1,255
Net income attributable to Entergy Corporation			$360,760												$75,281
Basic shares and earnings per average common share			430.3						$0.84						426.3						$0.18
Average dilutive effect of:
Stock options			0.9						—						0.5						—
Other equity plans			1.5						—						0.9						—
Equity forwards			7.9						(0.02)						—						—
Diluted shares and earnings per average common shares			440.6						$0.82						427.7						$0.18

Earnings per share dilution resulting from stock options outstanding and other equity plans is determined under the treasury stock method. The calculation of diluted earnings per share excluded 244,091 stock options outstanding for the three months ended March 31, 2025 and 2,282,518 stock options outstanding for the three months ended March 31, 2024 because their effect would have been antidilutive. Until settlement of the forward sale agreements discussed below in “Equity Distribution Program” and “Equity Forward Sale Agreements,” earnings per share dilution resulting from the agreements, if any, is determined under the treasury stock method. Share dilution occurs when the average market price of Entergy Corporation’s common stock is higher than the average forward sales price. The calculation of diluted earnings per share excluded 185,897 shares for the three months ended March 31, 2025 and 3,820,510 shares for the three months ended March 31, 2024 under forward sale agreements outstanding because their effect would have been antidilutive.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $0.60 for the three months ended March 31, 2025 and $0.57 for the three months ended March 31, 2024.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

(System Energy)

In February 2025, System Energy paid its parent, Entergy Corporation, a $20 million distribution out of its common stock.

Equity Distribution Program

See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s at the market equity distribution program. The following are updates to that discussion.

In February 2025, Entergy Corporation increased by an additional $1.5 billion the aggregate gross sales price authorized under its at the market equity distribution program pursuant to the terms of the equity distribution sales agreement for such program. The aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $4.5 billion. As of March 31, 2025, an aggregate gross sales price of approximately $2.8 billion has been sold under the at the market equity distribution program.

During the three months ended March 31, 2025 and 2024, there were no shares of common stock issued under the at the market equity distribution program.

The following forward sale agreements were entered into by Entergy Corporation under its at the market equity distribution program during the three months ended March 31, 2025:

Effective Date						Shares of Common Stock per Forward Sale Agreement						Maturity Date						Forward Sale Price per Share						Gross Sales Price						Forward Sellers Fees
																		(Dollars In Thousands, Except Per Share Data)
March 2025						2,713,790						August 2026						$84.77						$232,216						$2,322

Equity Forward Sale Agreements

In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties. No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the forward sale agreements occur. The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements.

Until settlement of the forward sale agreements, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. If Entergy had elected to net share settle the forward sale agreements as of March 31, 2025, Entergy would have been required to deliver 0.7 million shares.

Treasury Stock

During the three months ended March 31, 2025, Entergy Corporation reissued 1,193,693 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and

Entergy Corporation and Subsidiaries

Notes to Financial Statements

other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the three months ended March 31, 2025.

Retained Earnings

On April 7, 2025, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.60 per share, payable on June 2, 2025 to holders of record as of May 2, 2025.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended March 31, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, January 1,			$42,769						($162,460)
Amounts reclassified from accumulated other comprehensive income (loss)			(3,729)						(3,668)
Net other comprehensive loss for the period			(3,729)						(3,668)
Ending balance, March 31,			$39,040						($166,128)

The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the three months ended March 31, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, January 1,			$53,658						$54,798
Amounts reclassified from accumulated other comprehensive income			(971)						(2,024)
Net other comprehensive loss for the period			(971)						(2,024)
Ending balance, March 31,			$52,687						$52,774

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the three months ended March 31, 2025 and 2024 are as follows:

			Amounts reclassified from AOCI												Income Statement Location
			2025						2024
			(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit			$3,462						$3,473						(a)
Amortization of net gain			2,551						1,397						(a)
Total amortization			6,013						4,870
Income taxes			(2,284)						(1,202)						Income taxes
Total amortization (net of tax)			$3,729						$3,668
Total reclassifications for the period (net of tax)			$3,729						$3,668

(a)These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the three months ended March 31, 2025 and 2024 are as follows:

						Amounts reclassified from AOCI												Income Statement Location
						2025						2024
						(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit						$1,136						$1,136						(a)
Amortization of net gain						1,719						1,634						(a)
Total amortization						2,855						2,770
Income taxes						(1,884)						(746)						Income taxes
Total amortization (net of tax)						$971						$2,024
Total reclassifications for the period (net of tax)						$971						$2,024

(a)These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

NOTE 4. REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2029. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. As there were no borrowings under the facility for the three months ended March 31, 2025, the estimated interest rate as of March 31, 2025 that would have been applied

Entergy Corporation and Subsidiaries

Notes to Financial Statements

to outstanding borrowings under the facility was 5.92%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of March 31, 2025:

Capacity						Borrowings						Letters of Credit						Capacity Available
(In Millions)
$3,000						$—						$4						$2,996

Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.

Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of March 31, 2025, Entergy Corporation had $1,330 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2025 was 4.66%.

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2025 as follows:

Company						Expiration Date						Amount of Facility						Interest Rate (a)						Amount Drawn as of March 31, 2025						Letters of Credit Outstanding as of March 31, 2025
Entergy Arkansas						April 2026						$25 million (b)						6.27%						$—						$—
Entergy Arkansas						June 2029						$300 million (c)						5.55%						$—						$—
Entergy Louisiana						June 2029						$400 million (c)						5.67%						$—						$—
Entergy Mississippi						June 2029						$300 million (c)						5.55%						$—						$—
Entergy New Orleans						June 2027						$25 million (c)						6.05%						$—						$—
Entergy Texas						June 2029						$300 million (c)						5.67%						$—						$1.1 million

(a)The interest rate is the estimated interest rate as of March 31, 2025 that would have been applied to outstanding borrowings under the facility.

(b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option.

(c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $5 million for Entergy Mississippi; $10 million for Entergy New Orleans; and $25 million for Entergy Texas.

The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO and for other purposes. The following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2025:

Company						Amount of Uncommitted Facility						Letter of Credit Fee						Letters of Credit Issued as of March 31, 2025 (a) (b)
Entergy Arkansas						$25 million						0.78%						$17.1 million
Entergy Louisiana						$125 million						0.78%						$56.2 million
Entergy Mississippi						$65 million						0.78%						$32.6 million
Entergy New Orleans						$1 million						1.625%						$0.5 million
Entergy Texas						$150 million						1.250%						$105.4 million

(a)As of March 31, 2025, no letters of credit were posted with MISO to cover financial transmission rights at the Utility operating companies.

(b)As of March 31, 2025, the letters of credit issued for Entergy Mississippi include $31.3 million in MISO letters of credit and $1.3 million in non-MISO letters of credit outstanding under this facility.

The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy have FERC-authorized short-term borrowing limits effective through January 2027. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2025 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:

			Authorized						Borrowings
			(In Millions)
Entergy Arkansas			$250						$—
Entergy Louisiana			$450						$—
Entergy Mississippi			$200						$—
Entergy New Orleans			$150						$—
Entergy Texas			$200						$—
System Energy			$200						$—

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2025:

Company						Expiration Date						Amount of Facility						Weighted- Average Interest Rate on Borrowings (a)						Amount Outstanding as of March 31, 2025
												(Dollars in Millions)
Entergy Arkansas VIE						June 2027						$80						5.44%						$5.4
Entergy Louisiana River Bend VIE						June 2027						$105						5.43%						$72.3
Entergy Louisiana Waterford VIE						June 2027						$105						5.43%						$65.3
System Energy VIE						June 2027						$120						5.43%						$58.9

(a)Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company VIEs for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company VIE for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.

The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. Each lessee is in compliance with this covenant.

The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of March 31, 2025 as follows:

Company						Description						Amount
Entergy Arkansas VIE						1.84% Series N due July 2026						$90 million
Entergy Arkansas VIE						5.54% Series O due May 2029						$70 million
Entergy Louisiana River Bend VIE						2.51% Series V due June 2027						$70 million
Entergy Louisiana Waterford VIE						5.94% Series J due September 2026						$70 million
System Energy VIE						2.05% Series K due September 2027						$90 million

In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense.

As of March 31, 2025, Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through January 2027 for issuances by its nuclear fuel company VIEs.

Debt Issuances and Retirements

(Entergy Louisiana)

In January 2025, Entergy Louisiana issued $750 million of 5.80% Series mortgage bonds due March 2055. Entergy Louisiana used the proceeds, together with other funds: (1) to repay, prior to maturity, its $190 million of

Entergy Corporation and Subsidiaries

Notes to Financial Statements

3.78% Series mortgage bonds due April 2025; (2) to repay, prior to maturity, its $110 million of 3.78% Series mortgage bonds due April 2025; (3) for capital expenditures; and (4) for general corporate purposes.

(Entergy Mississippi)

In March 2025, Entergy Mississippi issued $600 million of 5.80% Series mortgage bonds due April 2055. Entergy Mississippi expects to use the proceeds, together with other funds, to finance a portion of the construction of the Delta Blues Advanced Power Station, the Delta Solar facility, and the Penton Solar facility, and for general corporate purposes.

(Entergy New Orleans)

In February 2025, Entergy New Orleans entered into a term loan credit agreement providing a $80 million unsecured term loan due March 2026. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable adjustment. The rate set as of March 31, 2025 was 5.77%. Entergy New Orleans received the funds in March 2025 and used the proceeds to repay, at maturity, its $78 million of 3.00% Series mortgage bonds due March 2025 and for general corporate purposes.

(Entergy Texas)

In February 2025, Entergy Texas issued $500 million of 5.25% Series mortgage bonds due April 2035. Entergy Texas expects to use the proceeds, together with other funds, to finance the construction of the Orange County Advanced Power Station and the Lone Star Power Station, and for general corporate purposes.

Fair Value

The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of March 31, 2025 were as follows:

			Book Value of Long-Term Debt						Fair Value of Long-Term Debt (a)
			(In Thousands)
Entergy			$29,594,991						$26,976,295
Entergy Arkansas			$5,107,853						$4,538,510
Entergy Louisiana			$10,405,643						$9,371,023
Entergy Mississippi			$3,020,618						$2,712,650
Entergy New Orleans			$737,355						$697,047
Entergy Texas			$4,047,376						$3,723,403
System Energy			$1,076,797						$1,063,300

(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of December 31, 2024 were as follows:

			Book Value of Long-Term Debt						Fair Value of Long-Term Debt (a)
			(In Thousands)
Entergy			$27,991,595						$25,181,802
Entergy Arkansas			$5,122,494						$4,546,643
Entergy Louisiana			$9,866,453						$8,751,266
Entergy Mississippi			$2,427,073						$2,116,246
Entergy New Orleans			$735,467						$697,466
Entergy Texas			$3,552,443						$3,176,230
System Energy			$1,089,736						$1,063,946

(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

NOTE 5. STOCK-BASED COMPENSATION (Entergy Corporation)

Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K. Awards under Entergy’s plans generally vest over three years.

Stock Options

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of options on 366,136 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $17.43 per option. As of March 31, 2025, there were options on 3,176,358 shares of common stock outstanding with a weighted-average exercise price of $56.58. The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of March 31, 2025. The aggregate intrinsic value of the stock options outstanding as of March 31, 2025 was $91.8 million.

The following table includes financial information for stock options for the three months ended March 31, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$1.1						$1.1
Tax benefit recognized in Entergy’s consolidated net income			$0.3						$0.3
Compensation cost capitalized as part of fixed assets and materials and supplies			$0.5						$0.5

Other Equity Awards

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of 510,009 restricted stock awards and 187,036 performance units under the 2019 Omnibus Incentive Plan. The restricted stock awards were made effective on February 6, 2025 and were valued at $82.79 per share, which was the closing price of Entergy Corporation’s common stock on the grant date. Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy

Entergy Corporation and Subsidiaries

Notes to Financial Statements

upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date.

The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. To emphasize the importance of environmental stewardship, specifically of carbon-free generation and resilience, an environmental achievement measure was selected as one of the performance measures for the 2025-2027 performance period. For the 2025-2027 performance period, performance will be measured based eighty percent on relative total shareholder return and twenty percent on the environmental achievement measure. The performance units were granted on February 6, 2025 and eighty percent were valued at $115.13 per share based on various factors, primarily market conditions; and twenty percent were valued at $82.79 per share, the closing price of Entergy Corporation’s common stock on the grant date. Performance units have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period, and compensation cost for the portion of the award based on the selected environmental achievement measure will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program.

The following table includes financial information for other outstanding equity awards for the three months ended March 31, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$10.0						$9.9
Tax benefit recognized in Entergy’s consolidated net income			$2.5						$2.5
Compensation cost capitalized as part of fixed assets and materials and supplies			$4.8						$4.5

NOTE 6. RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension costs, including amounts capitalized, for the three months ended March 31, 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$23,617						$23,376
Interest cost on projected benefit obligation			59,680						70,626
Expected return on assets			(75,280)						(95,980)
Recognized net loss			13,309						15,120
Net pension cost			$21,326						$13,142

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the three months ended March 31, 2025 and 2024, included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$4,427						$5,454						$1,304						$411						$1,024						$1,372
Interest cost on projected benefit obligation						13,814						14,704						3,699						1,647						2,973						3,585
Expected return on assets						(17,676)						(18,897)						(4,949)						(2,174)						(3,889)						(4,575)
Recognized net loss						4,791						2,268						822						415						454						1,114
Net pension cost						$5,356						$3,529						$876						$299						$562						$1,496

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$4,099						$5,551						$1,284						$440						$961						$1,384
Interest cost on projected benefit obligation						13,217						13,961						3,521						1,569						2,831						3,391
Expected return on assets						(18,155)						(19,447)						(5,113)						(2,204)						(4,077)						(4,648)
Recognized net loss						5,746						2,602						1,140						470						393						1,165
Net pension cost						$4,907						$2,667						$832						$275						$108						$1,292

Non-Qualified Net Pension Cost

Entergy recognized $2.5 million and $2.7 million in pension cost for its non-qualified pension plans for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the three months ended March 31, 2025 and 2024:

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Thousands)
2025			$47						$36						$90						$35						$39
2024			$68						$51						$83						$31						$62

For the three months ended March 31, 2025 and 2024 there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Components of Net Other Postretirement Benefits Income

Entergy’s other postretirement benefits income, including amounts capitalized, for the three months ended March 31, 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$2,757						$3,126
Interest cost on accumulated postretirement benefits obligation (APBO)			9,690						9,852
Expected return on assets			(10,209)						(10,569)
Amortization of prior service credit			(5,720)						(5,720)
Recognized net gain			(3,870)						(2,761)
Net other postretirement benefits income			($7,352)						($6,072)

The Registrant Subsidiaries’ other postretirement benefits income, including amounts capitalized, for their current and former employees for the three months ended March 31, 2025 and 2024 included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$572						$671						$162						$52						$159						$174
Interest cost on APBO						1,775						2,012						489						249						582						394
Expected return on assets						(4,225)						—						(1,328)						(1,445)						(2,452)						(702)
Amortization of prior service cost (credit)						524						(1,136)						(239)						(229)						(1,093)						(73)
Recognized net (gain) loss						(353)						(1,811)						(57)						(27)						153						(7)
Net other postretirement benefits income						($1,707)						($264)						($973)						($1,400)						($2,651)						($214)

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$642						$700						$184						$51						$168						$175
Interest cost on APBO						1,833						1,999						486						253						603						398
Expected return on assets						(4,384)						—						(1,372)						(1,479)						(2,539)						(728)
Amortization of prior service cost (credit)						524						(1,136)						(239)						(229)						(1,093)						(73)
Recognized net (gain) loss						—						(1,738)						15						19						148						—
Net other postretirement benefits income						($1,385)						($175)						($926)						($1,385)						($2,713)						($228)

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the three months ended March 31, 2025 and 2024:

2025						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$—						$3,493						($31)						$3,462
Amortization of net gain (loss)						(411)						3,070						(108)						2,551
						($411)						$6,563						($139)						$6,013
Entergy Louisiana
Amortization of prior service credit						$—						$1,136						$—						$1,136
Amortization of net gain (loss)						(91)						1,811						(1)						1,719
						($91)						$2,947						($1)						$2,855

2024						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$—						$3,513						($40)						$3,473
Amortization of net gain (loss)						(1,138)						2,615						(80)						1,397
						($1,138)						$6,128						($120)						$4,870
Entergy Louisiana
Amortization of prior service credit						$—						$1,136						$—						$1,136
Amortization of net gain (loss)						(104)						1,738						—						1,634
						($104)						$2,874						$—						$2,770

Accounting for Pension and Other Postretirement Benefits

In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Employer Contributions

Based on current assumptions, Entergy expects to contribute $240 million to its qualified pension plans in 2025. As of March 31, 2025, Entergy had contributed $52.9 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2025:

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
			(In Thousands)
Expected 2025 pension contributions			$35,544						$41,253						$8,064						$5,016						$7,725						$15,668
Pension contributions made through March 2025			$10,776						$9,513						$2,580						$1,144						$1,745						$3,328
Remaining estimated pension contributions to be made in 2025			$24,768						$31,740						$5,484						$3,872						$5,980						$12,340

Entergy Corporation and Subsidiaries

Notes to Financial Statements

NOTE 7. BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business in portions of Louisiana. Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments.

The following table includes operating revenues and significant expense categories regularly provided to the chief operating decision maker for the Utility segment, a reconciliation of Utility operating revenues to Entergy’s consolidated operating revenues, and a reconciliation of Utility net income to consolidated net income and net income attributable to Entergy Corporation for the three months ended March 31, 2025 and 2024:

																		2025						2024
												(In Thousands)
Utility operating revenues																		$2,829,597						$2,772,173
Reconciliation of revenues:
Other revenues (a)																		17,303						22,476
Elimination of intersegment revenues																		(26)						(21)
Consolidated operating revenues																		2,846,874						2,794,628
Less Utility expenses and other items:
Fuel, fuel-related expenses, and gas purchased for resale																		338,983						604,404
Purchased power																		342,084						219,194
Other operation and maintenance expenses																		662,474						680,715
Other regulatory charges (credits) - net																		(16,843)						109,346
Other Utility items (b)																		1,011,857						962,534
Utility net income																		491,042						195,980
Reconciliation of net income:
Other loss																		(53,372)						(39,883)
Elimination of intersegment loss																		(75,248)						(79,561)
Consolidated net income																		362,422						76,536
Preferred dividend requirements of subsidiaries and noncontrolling interests (c)																		1,662						1,255
Net income attributable to Entergy Corporation																		$360,760						$75,281

(a)See Note 12 to the financial statements herein and Note 19 to the financial statements in the Form 10-K for discussion of other revenues.

(b)Other Utility items includes nuclear refueling outage expenses, asset write-offs, decommissioning expenses, taxes other than income taxes, depreciation and amortization expenses, other income, interest expense, and income tax expense.

(c)Preferred dividend requirements of subsidiaries and noncontrolling interests is substantially derived from the Utility segment. See Note 6 to the financial statements in the Form 10-K for discussion of preferred stock and noncontrolling interests.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The following tables present segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the three months ended March 31, 2025 and 2024:

						Utility						Parent & Other						Eliminations						Consolidated
						(In Thousands)
2025
Depreciation, amortization, and decommissioning						$567,187						$1,685						$—						$568,872
Interest and investment income						$107,175						$1,688						($75,457)						$33,406
Interest expense						$267,131						$62,869						($209)						$329,791
Income taxes						$114,273						($14,232)						$—						$100,041
Total assets as of March 31, 2025						$70,774,423						$733,093						($4,887,107)						$66,620,409
Total expenditures for additions to long-lived assets						$1,749,817						$191						$—						$1,750,008
2024
Asset write-offs, impairments, and related charges (credits)						$131,775						$—						$—						$131,775
Depreciation, amortization, and decommissioning						$551,489						$1,554						$—						$553,043
Interest and investment income						$225,251						$5,368						($79,922)						$150,697
Interest expense						$212,148						$55,413						($361)						$267,200
Income taxes						$34,548						($13,554)						$—						$20,994
Total assets as of December 31, 2024						$68,951,564						$721,459						($4,882,991)						$64,790,032
Total expenditures for additions to long-lived assets						$1,266,823						$258						$—						$1,267,081

Eliminations are primarily intersegment activity. All of Entergy’s goodwill is related to the Utility segment.

Registrant Subsidiaries

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one operating and reportable segment, an integrated utility business which includes the generation, transmission, and distribution of electric power; and operation of a small natural gas distribution business at each of Entergy Louisiana and Entergy New Orleans. System Energy has one operating and reportable segment, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations are managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. All segment financial information for the Registrant Subsidiaries is as reported on the respective financial statements for each of the Registrant Subsidiaries.

NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Market Risk

In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk

Entergy Corporation and Subsidiaries

Notes to Financial Statements

including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk associated with the price of fuel.

The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use commodity and financial instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs, that are recovered from customers.

Derivatives

Entergy designates a significant portion of its derivative instruments as normal purchase/normal sale transactions due to their physical settlement provisions, including power purchase and sales agreements, fuel purchase agreements, and capacity contracts. Certain derivative instruments do not qualify for designation as normal purchase/normal sale transactions due to their financial settlement provisions. See further discussion below regarding the accounting for these derivative instruments.

Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of natural gas swaps that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy New Orleans. The maximum length of time over which Entergy has executed natural gas swaps as of March 31, 2025 is 7 months for Entergy Mississippi. The total volume of natural gas swaps outstanding as of March 31, 2025 is 12,246,850 MMBtu for Entergy and Entergy Mississippi. As of March 31, 2025, Entergy Louisiana and Entergy New Orleans had no outstanding natural gas swaps. Credit support for these natural gas swaps is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral.

During the second quarter 2024, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2024 through May 31, 2025. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of March 31, 2025 is 24,226 GWh for Entergy, including 5,865 GWh for Entergy Arkansas, 10,036 GWh for Entergy Louisiana, 3,781 GWh for Entergy Mississippi, 1,001 GWh for Entergy New Orleans, and 3,501 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy’s non-utility operations business is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of March 31, 2025 and December 31, 2024. No letters of credit were posted with MISO to cover financial transmission rights exposure as of March 31, 2025. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas as of December 31, 2024.

The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of March 31, 2025 and December 31, 2024 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and

Entergy Corporation and Subsidiaries

Notes to Financial Statements

are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)
												(In Millions)
2025
Assets:
Natural gas swaps						Prepayments and other						$8						$—						$8
Financial transmission rights						Prepayments and other						$7						$—						$7
2024
Assets:
Natural gas swaps						Prepayments and other						$2						$—						$2
Financial transmission rights						Prepayments and other						$21						($1)						$20
Liabilities:
Financial transmission rights						Other current liabilities						($—)						$1						$1

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets

(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $2 million as of December 31, 2024

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended March 31, 2025 and 2024 are as follows:

Instrument						Income Statement Location						Amount of gain (loss) recorded in the income statement
												(In Millions)
2025
Natural gas swaps						Fuel, fuel-related expenses, and gas purchased for resale			(a)			$11
Financial transmission rights						Purchased power expense			(b)			$49
2024
Natural gas swaps						Fuel, fuel-related expenses, and gas purchased for resale			(a)			($6)
Financial transmission rights						Purchased power expense			(b)			$53

(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of March 31, 2025 and December 31, 2024 are shown in the tables below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)						Registrant
												(In Millions)
2025
Assets:
Natural gas swaps						Prepayments and other						$8.4						$—						$8.4						Entergy Mississippi
Financial transmission rights						Prepayments and other						$3.0						$—						$3.0						Entergy Arkansas
Financial transmission rights						Prepayments and other						$3.4						$—						$3.4						Entergy Louisiana
Financial transmission rights						Prepayments and other						$0.4						$—						$0.4						Entergy New Orleans
Financial transmission rights						Prepayments and other						$0.6						($0.2)						$0.4						Entergy Texas
Liabilities:
Financial transmission rights						Other current liabilities						($0.2)						$0.3						$0.1						Entergy Mississippi

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)						Registrant
												(In Millions)
2024
Assets:
Natural gas swaps						Prepayments and other						$1.6						$—						$1.6						Entergy Mississippi
Financial transmission rights						Prepayments and other						$8.6						($0.1)						$8.5						Entergy Arkansas
Financial transmission rights						Prepayments and other						$8.7						($0.1)						$8.6						Entergy Louisiana
Financial transmission rights						Prepayments and other						$1.3						$—						$1.3						Entergy New Orleans
Financial transmission rights						Prepayments and other						$2.0						($0.1)						$1.9						Entergy Texas
Liabilities:
Financial transmission rights						Other current liabilities						($0.4)						$0.9						$0.5						Entergy Mississippi

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $0.5 million for Entergy Arkansas, $0.1 million for Entergy Louisiana, $0.8 million for Entergy Mississippi, $0.1 million for Entergy New Orleans, and $0.3 million for Entergy Texas as of December 31, 2024.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the three months ended March 31, 2025 and 2024 are as follows:

Instrument						Income Statement Location						Amount of gain (loss) recorded in the income statement						Registrant
												(In Millions)
2025
Natural gas swaps						Fuel, fuel-related expenses, and gas purchased for resale						$11.4			(a)			Entergy Mississippi
Financial transmission rights						Purchased power expense						$18.8			(b)			Entergy Arkansas
Financial transmission rights						Purchased power expense						$22.0			(b)			Entergy Louisiana
Financial transmission rights						Purchased power expense						$2.0			(b)			Entergy Mississippi
Financial transmission rights						Purchased power expense						$2.2			(b)			Entergy New Orleans
Financial transmission rights						Purchased power expense						$3.5			(b)			Entergy Texas
2024
Natural gas swaps						Fuel, fuel-related expenses, and gas purchased for resale						$5.2			(a)			Entergy Mississippi
Natural gas swaps						Fuel, fuel-related expenses, and gas purchased for resale						$0.5			(a)			Entergy New Orleans
Financial transmission rights						Purchased power expense						$26.9			(b)			Entergy Arkansas
Financial transmission rights						Purchased power expense						$16.2			(b)			Entergy Louisiana
Financial transmission rights						Purchased power expense						$1.1			(b)			Entergy Mississippi
Financial transmission rights						Purchased power expense						$1.1			(b)			Entergy New Orleans
Financial transmission rights						Purchased power expense						$7.5			(b)			Entergy Texas

(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.

(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

Fair Values

The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments.

Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market

Entergy Corporation and Subsidiaries

Notes to Financial Statements

participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value.

Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs.

The three levels of the fair value hierarchy are:

• Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas swaps traded on exchanges with active markets. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following:

–quoted prices for similar assets or liabilities in active markets;

–quoted prices for identical assets or liabilities in inactive markets;

–inputs other than quoted prices that are observable for the asset or liability; or

–inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 2 consists primarily of individually-owned debt instruments and gas swaps valued using observable inputs.

• Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights.

The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight. The values are calculated internally and verified against the data published by MISO. Entergy’s Accounting group reviews these valuations for reasonableness, with the assistance of others within the organization with knowledge of the various inputs and assumptions used in the valuation. The Office of Corporate Risk Oversight reports to the Vice President and Treasurer. The Accounting group reports to the Chief Accounting Officer.

The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2025 and December 31, 2024. The assessment

Entergy Corporation and Subsidiaries

Notes to Financial Statements

of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$1,444						$—						$—						$1,444
Decommissioning trust funds (a):
Equity securities						41						—						—						41
Debt securities						861						1,230						—						2,091
Common trusts (b)																								3,315
Securitization recovery trust account						10						—						—						10
Storm reserve escrow accounts						300						—						—						300
Natural gas swaps						8						—						—						8
Financial transmission rights						—						—						7						7
						$2,664						$1,230						$7						$7,216

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$811						$—						$—						$811
Decommissioning trust funds (a):
Equity securities						30						—						—						30
Debt securities						848						1,199						—						2,047
Common trusts (b)																								3,486
Securitization recovery trust account						4						—						—						4
Storm reserve escrow accounts						340						—						—						340
Natural gas swaps						2						—						—						2
Financial transmission rights						—						—						20						20
						$2,035						$1,199						$20						$6,740
Liabilities:
Financial transmission rights						$—						$—						$1						$1

(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.

(b)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2025 and 2024:

			2025						2024
			(In Millions)
Balance as of January 1,			$20						$21
Gains included as a regulatory liability/asset			36						41
Settlements			(49)						(53)
Balance as of March 31,			$7						$9

The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO.

The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2025 and December 31, 2024. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.

Entergy Arkansas

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$54.9						$—						$—						$54.9
Decommissioning trust funds (a):
Equity securities						19.5						—						—						19.5
Debt securities						265.9						324.2						—						590.1
Common trusts (b)																								961.6
Financial transmission rights						—						—						3.0						3.0
						$340.3						$324.2						$3.0						$1,629.1

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$3.4						$—						$—						$3.4
Decommissioning trust funds (a):
Equity securities						12.9						—						—						12.9
Debt securities						259.9						319.1						—						579.0
Common trusts (b)																								1,012.5
Financial transmission rights						—						—						8.5						8.5
						$276.2						$319.1						$8.5						$1,616.3

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Entergy Louisiana

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$392.0						$—						$—						$392.0
Decommissioning trust funds (a):
Equity securities						17.1						—						—						17.1
Debt securities						329.2						596.9						—						926.1
Common trusts (b)																								1,435.0
Storm reserve escrow account						226.0						—						—						226.0
Financial transmission rights						—						—						3.4						3.4
						$964.3						$596.9						$3.4						$2,999.6

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$326.8						$—						$—						$326.8
Decommissioning trust funds (a):
Equity securities						14.5						—						—						14.5
Debt securities						326.0						582.1						—						908.1
Common trusts (b)																								1,506.5
Storm reserve escrow account						256.7						—						—						256.7
Financial transmission rights						—						—						8.6						8.6
						$924.0						$582.1						$8.6						$3,021.2

Entergy Mississippi

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$598.0						$—						$—						$598.0
Natural gas swaps						8.4						—						—						8.4
						$606.4						$—						$—						$606.4
Liabilities:
Financial transmission rights						$—						$—						$0.1						$0.1

Entergy Corporation and Subsidiaries

Notes to Financial Statements

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$155.5						$—						$—						$155.5
Natural gas swaps						1.6						—						—						1.6
						$157.1						$—						$—						$157.1
Liabilities:
Financial transmission rights						$—						$—						$0.5						$0.5

Entergy New Orleans

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$13.9						$—						$—						$13.9
Securitization recovery trust account						0.9						—						—						0.9
Storm reserve escrow account						74.3						—						—						74.3
Financial transmission rights						—						—						0.4						0.4
						$89.1						$—						$0.4						$89.5

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$31.4						$—						$—						$31.4
Securitization recovery trust account						1.6						—						—						1.6
Storm reserve escrow account						83.7						—						—						83.7
Financial transmission rights						—						—						1.3						1.3
						$116.7						$—						$1.3						$118.0

Entergy Texas

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$298.0						$—						$—						$298.0
Securitization recovery trust account						8.8						—						—						8.8
Financial transmission rights						—						—						0.4						0.4
						$306.8						$—						$0.4						$307.2

Entergy Corporation and Subsidiaries

Notes to Financial Statements

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$184.7						$—						$—						$184.7
Securitization recovery trust account						2.7						—						—						2.7
Financial transmission rights						—						—						1.9						1.9
						$187.4						$—						$1.9						$189.3

System Energy

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$2.4						$—						$—						$2.4
Decommissioning trust funds (a):
Equity securities						3.7						—						—						3.7
Debt securities						266.0						308.9						—						574.9
Common trusts (b)																								918.7
						$272.1						$308.9						$—						$1,499.7

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$28.5						$—						$—						$28.5
Decommissioning trust funds (a):
Equity securities						2.4						—						—						2.4
Debt securities						262.4						297.4						—						559.8
Common trusts (b)																								966.9
						$293.3						$297.4						$—						$1,557.6

(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.

(b)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2025.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of January 1,			$8.6						$8.6						($0.5)						$1.3						$1.9
Gains included as a regulatory liability/asset			13.2						16.8						2.4						1.3						2.0
Settlements			(18.8)						(22.0)						(2.0)						(2.2)						(3.5)
Balance as of March 31,			$3.0						$3.4						($0.1)						$0.4						$0.4

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2024.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of January 1,			$6.0						$9.8						$1.4						$1.1						$2.4
Gains included as a regulatory liability/asset			23.7						10.5						0.3						0.5						6.3
Settlements			(26.9)						(16.2)						(1.1)						(1.1)						(7.5)
Balance as of March 31,			$2.8						$4.1						$0.6						$0.5						$1.2

NOTE 9. DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires certain of the Utility operating companies and System Energy to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1 and 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other long-term liabilities on the consolidated balance sheets of Entergy and Entergy Louisiana for the unrealized trust earnings not currently expected to be needed to decommission the plant. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three months ended March 31, 2025 on equity securities still held as of March 31, 2025 were $190 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The available-for-sale debt securities held as of March 31, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$2,091						$2,047
Unrealized gains						$15						$7
Unrealized losses						$62						$80

As of March 31, 2025 and December 31, 2024, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $2,138 million as of March 31, 2025 and $2,121 million as of December 31, 2024. As of March 31, 2025, available-for-sale debt securities had an average coupon rate of approximately 4.12%, an average duration of approximately 6.35 years, and an average maturity of approximately 10.94 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of March 31, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$638						$14						$1,102						$24
More than 12 months						469						48						510						56
Total						$1,107						$62						$1,612						$80

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of March 31, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$29						$36
1 year - 5 years			551						574
5 years - 10 years			639						629
10 years - 15 years			205						166
15 years - 20 years			216						218
20 years+			451						424
Total			$2,091						$2,047

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three months ended March 31, 2025 and 2024:

						2025						2024
						(In Millions)
Proceeds from disposition of securities						$262						$169
Realized gains						$1						$—
Realized losses						$4						$7

Entergy Corporation and Subsidiaries

Notes to Financial Statements

During the three months ended March 31, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of March 31, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$590.1						$579.0
Unrealized gains						$4.0						$1.2
Unrealized losses						$18.1						$25.8

The amortized cost of available-for-sale debt securities was $604.3 million as of March 31, 2025 and $603.5 million as of December 31, 2024. As of March 31, 2025, the available-for-sale debt securities had an average coupon rate of approximately 3.71%, an average duration of approximately 6.24 years, and an average maturity of approximately 8.49 years.

The unrealized gains/(losses) recognized during the three months ended March 31, 2025 on equity securities still held as of March 31, 2025 were $56.9 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of March 31, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$158.4						$3.9						$282.8						$8.2
More than 12 months						183.0						14.2						195.0						17.6
Total						$341.4						$18.1						$477.8						$25.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of March 31, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$25.2						$31.7
1 year - 5 years			144.0						142.5
5 years - 10 years			234.8						231.0
10 years - 15 years			71.2						62.2
15 years - 20 years			64.2						62.8
20 years+			50.7						48.8
Total			$590.1						$579.0

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three months ended March 31, 2025 and 2024:

						2025						2024
						(In Millions)
Proceeds from disposition of securities						$—						$12.4
Realized gains						$—						$—
Realized losses						$—						$0.4

During three months ended March 31, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of March 31, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$926.1						$908.1
Unrealized gains						$6.3						$3.6
Unrealized losses						$23.1						$26.9

The amortized cost of available-for-sale debt securities was $943 million as of March 31, 2025 and $931.5 million as of December 31, 2024. As of March 31, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.37%, an average duration of approximately 6.43 years, and an average maturity of approximately 12.67 years.

The unrealized gains/(losses) recognized during the three months ended March 31, 2025 on equity securities still held as of March 31, 2025 were $78.8 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of March 31, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$324.8						$6.7						$543.8						$8.8
More than 12 months						165.0						16.4						178.4						18.1
Total						$489.8						$23.1						$722.2						$26.9

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of March 31, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$3.7						$4.4
1 year - 5 years			221.2						188.2
5 years - 10 years			212.0						259.4
10 years - 15 years			97.4						80.9
15 years - 20 years			103.6						106.1
20 years+			288.2						269.1
Total			$926.1						$908.1

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three months ended March 31, 2025 and 2024:

						2025						2024
						(In Millions)
Proceeds from disposition of securities						$110.0						$48.4
Realized gains						$0.1						$0.2
Realized losses						$1.5						$2.9

During the three months ended March 31, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of March 31, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$574.9						$559.8
Unrealized gains						$4.7						$1.9
Unrealized losses						$20.6						$27.6

The amortized cost of available-for-sale debt securities was $590.7 million as of March 31, 2025 and $585.5 million as of December 31, 2024. As of March 31, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.16%, an average duration of approximately 6.35 years, and an average maturity of approximately 10.71 years.

The unrealized gains/(losses) recognized during the three months ended March 31, 2025 on equity securities still held as of March 31, 2025 were $53.8 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of March 31, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
			(In Millions)
Less than 12 months						$154.4						$2.9						$275.6						$6.8
More than 12 months						120.6						17.7						136.8						20.8
Total						$275.0						$20.6						$412.4						$27.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of March 31, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$0.2						$0.2
1 year - 5 years			185.8						243.7
5 years - 10 years			192.4						138.9
10 years - 15 years			36.2						22.7
15 years - 20 years			48.6						49.4
20 years+			111.7						104.9
Total			$574.9						$559.8

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three months ended March 31, 2025 and 2024:

						2025						2024
						(In Millions)
Proceeds from disposition of securities						$152.3						$108.0
Realized gains						$0.6						$0.2
Realized losses						$2.7						$3.5

During the three months ended March 31, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

NOTE 10. INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See “Income Tax Audits” and “Other Tax Matters” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. There are no material updates to the information discussed in Note 3 to the financial statements in the Form 10-K.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

NOTE 11. VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities (VIEs). See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities, commercial paper borrowings, and long-term debt. See Note 6 to the financial statements in the Form 10-K for discussion of noncontrolling interests.

Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of March 31, 2025 and December 31, 2024, the primary asset held by the storm trust I was $2.8 billion and $2.9 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1% beneficial interest in the storm trust I is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $28.4 million as of March 31, 2025 and $28.8 million as of December 31, 2024.

Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of March 31, 2025 and December 31, 2024, the primary asset held by the storm trust II was $1.4 billion of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1% beneficial interest in the storm trust II is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $14.1 million as of March 31, 2025 and $13.9 million as of December 31, 2024.

System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest in the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $8.6 million in each of the three months ended March 31, 2025 and the three months ended March 31, 2024.

AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of March 31, 2025, AR Searcy Partnership, LLC recorded assets equal to $128.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $113.8 million. As of December 31, 2024, AR Searcy Partnership, LLC recorded assets equal to $129.7 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $113.2 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Arkansas.

MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of March 31, 2025, MS Sunflower Partnership, LLC recorded assets equal to $154.9 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $137.4 million. As of December 31, 2024, MS Sunflower Partnership, LLC recorded assets equal to $157.8 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $132.7 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Mississippi.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

NOTE 12. REVENUE (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Operating Revenues

See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended March 31, 2025 and 2024 were as follows:

						2025						2024
						(In Thousands)
Utility:
Residential						$1,113,304						$1,070,341
Commercial						684,007						691,851
Industrial						774,119						748,957
Governmental						62,819						65,310
Total billed retail						2,634,249						2,576,459
Sales for resale (a)						51,872						79,003
Other electric revenues (b)						76,218						36,035
Revenues from contracts with customers						2,762,339						2,691,497
Other Utility revenues (c)						(4,473)						15,009
Electric revenues						2,757,866						2,706,506
Natural gas revenues						71,731						65,667
Other revenues (d)						17,277						22,455
Total operating revenues						$2,846,874						$2,794,628

The Utility operating companies’ total revenues for the three months ended March 31, 2025 and 2024 were as follows:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$274,606						$378,238						$186,308						$65,689						$208,463
Commercial						131,617						263,200						135,873						47,622						105,695
Industrial						149,065						465,707						47,345						5,654						106,348
Governmental						4,219						21,669						13,690						16,529						6,712
Total billed retail						559,507						1,128,814						383,216						135,494						427,218
Sales for resale (a)						36,729						111,548						28,097						3,889						2,395
Other electric revenues (b)						16,076						37,989						11,799						(565)						12,296
Revenues from contracts with customers						612,312						1,278,351						423,112						138,818						441,909
Other revenues (c)						1,199						(6,405)						597						107						30
Electric revenues						613,511						1,271,946						423,709						138,925						441,939
Natural gas revenues						—						29,601						—						42,130						—
Total operating revenues						$613,511						$1,301,547						$423,709						$181,055						$441,939

Entergy Corporation and Subsidiaries

Notes to Financial Statements

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$275,753						$345,027						$178,617						$67,677						$203,267
Commercial						141,307						256,696						132,318						53,226						108,304
Industrial						149,407						421,597						46,427						6,977						124,549
Governmental						4,698						21,821						13,330						18,354						7,107
Total billed retail						571,165						1,045,141						370,692						146,234						443,227
Sales for resale (a)						38,965						82,728						47,932						12,500						1,907
Other electric revenues (b)						9,342						37,945						(6,202)						(3,219)						(488)
Revenues from contracts with customers						619,472						1,165,814						412,422						155,515						444,646
Other revenues (c)						2,573						6,979						2,434						1,426						(155)
Electric revenues						622,045						1,172,793						414,856						156,941						444,491
Natural gas revenues						—						29,647						—						36,020						—
Total operating revenues						$622,045						$1,202,440						$414,856						$192,961						$444,491

(a)Sales for resale includes day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments and includes them as part of customer revenues.

(b)Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market, unbilled revenue, and certain customer credits as directed by regulators.

(c)Other Utility revenues include the occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees.

(d)Other revenues include the sale of electric power and capacity to wholesale customers, day-ahead sales of energy in a market administered by an ISO, and operation and management services fees.

NOTE 13. HELD FOR SALE (Entergy Corporation, Entergy Louisiana, and Entergy New Orleans)

Held for Sale

See Note 14 to the financial statements in the Form 10-K for information regarding the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. The following are updates to that discussion.

Natural Gas Distribution Businesses

On October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of Orleans, Louisiana, and Entergy Louisiana has agreed to sell its regulated natural gas local distribution company business serving customers in the Parish of East Baton Rouge, Louisiana. The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy Louisiana and Entergy New Orleans.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).

The transactions have two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions are satisfied or, where permissible, waived for both transactions. As described above, the transactions have received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

Under the purchase and sale agreements, the closing of the transactions is not required to occur earlier than six months following the initiation of the Second Phase; however, the parties may agree to close prior to that date. The purchase and sale agreements may be terminated by either party in the event the closing has not occurred prior to October 28, 2025. Neither transaction is subject to a financing condition for the applicable buyer.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

As of March 31, 2025 and December 31, 2024, the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses met the criteria to be classified as held for sale. As of March 31, 2025, neither Entergy Louisiana nor Entergy New Orleans has recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale is expected to result in a loss. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of March 31, 2025 and December 31, 2024 included the following amounts:

						March 31, 2025																		December 31, 2024
						Entergy						Entergy Louisiana						Entergy New Orleans						Entergy						Entergy Louisiana						Entergy New Orleans
						(In Thousands)																		(In Thousands)
Deferred fuel						$5,318						$2,676						$2,642						$5,608						$727						$4,881
Fuel inventory - at average cost						3,506						802						2,704						4,493						702						3,791
Materials and supplies						5,065						1,121						3,944						5,451						1,045						4,406
Prepayments and other						2,009						81						1,928						22						—						22
Total current assets held for sale						$15,898						$4,680						$11,218						$15,574						$2,474						$13,100
Property, plant, and equipment - natural gas						$688,009						$308,239						$379,770						$679,502						$303,193						$376,309
Construction work in progress						3,441						1,287						2,154						2,959						1,085						1,874
Less - accumulated depreciation and amortization						(280,796)						(141,851)						(138,945)						(276,388)						(139,556)						(136,832)
Other regulatory assets						35,040						8,904						23,412						35,381						8,947						23,682
Goodwill (a)						6,403						—						—						6,474						—						—
Pension and other postretirement assets						14,916						—						19,724						14,663						—						19,499
Other						202						—						202						206						—						206
Total non-current assets held for sale						$467,215						$176,579						$286,317						$462,797						$173,669						$284,738
Accounts payable						$802						$802						$—						$702						$702						$—
Customer deposits						6,017						1,809						4,208						6,214						1,984						4,230
Taxes accrued						1,284						1,268						16						13						13						—
Other						1,349						541						808						1,401						589						812
Total current liabilities held for sale (b)						$9,452						$4,420						$5,032						$8,330						$3,288						$5,042
Regulatory liability for income taxes - net						$32,327						$5,418						$26,909						$31,575						$4,981						$26,594
Other regulatory liabilities						2,424						1,850						574						1,611						1,214						397
Pension and other postretirement liabilities						3,988						4,546						1,188						3,976						4,525						1,197
Other						3,610						1,110						2,500						3,844						1,194						2,650
Total non-current liabilities held for sale (c)						$42,349						$12,924						$31,171						$41,006						$11,914						$30,838

(a) Goodwill is allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.

(b) Included within other current liabilities on the respective consolidated balance sheets.

(c) Included within other non-current liabilities on the respective consolidated balance sheets.

Entergy Louisiana and Entergy New Orleans will continue to recognize depreciation on the natural gas distribution businesses assets since they will continue to receive revenues through utility customer rates until the closing of the transaction, and because the final purchase price for the natural gas distribution businesses will be adjusted by an amount equal to that depreciation, among other adjustments.

Entergy Corporation and Subsidiaries

Notes to Financial Statements

The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three months ended March 31, 2025 and 2024 is as follows:

						2025						2024
						(In Thousands)
Entergy						$22,016						$19,932
Entergy Louisiana						$9,775						$10,104
Entergy New Orleans						$12,241						$9,828

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In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. Entergy’s business is subject to seasonal fluctuations, however, with peak periods occurring typically during the first and third quarters. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year.