filings.toolsItem 4. Controls and Procedures
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Item 4. Controls and Procedures
Disclosure Controls and Procedures
As of March 31, 2025, evaluations were performed under the supervision and with the participation of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy (each individually a “Registrant” and collectively the “Registrants”) management, including their respective Principal Executive Officers (PEO) and Principal Financial Officers (PFO). The evaluations assessed the effectiveness of the Registrants’ disclosure controls and procedures. Based on the evaluations, each PEO and PFO has concluded that, as to the Registrant or Registrants for which they serve as PEO or PFO, the Registrant’s or Registrants’ disclosure controls and procedures are effective to ensure that information required to be disclosed by each Registrant in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms; and that the Registrant’s or Registrants’ disclosure controls and procedures are also effective in reasonably assuring that such information is accumulated and communicated to the Registrant’s or Registrants’ management, including their respective PEOs and PFOs, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
Under the supervision and with the participation of each Registrant’s management, including its respective PEO and PFO, each Registrant evaluated changes in internal control over financial reporting that occurred during the quarter ended March 31, 2025 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Results of Operations
Net Income
Entergy Arkansas had net income of $86.5 million for the three months ended March 31, 2025 compared to a net loss of $32.3 million for the three months ended March 31, 2024 primarily due to a $131.8 million ($99.1 million net-of-tax) charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024. Also contributing to the net income were higher volume/weather and higher retail electric price, partially offset by higher depreciation and amortization expenses and higher interest expense. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the opportunity sales proceeding.
Operating Revenues
Following is an analysis of the change in operating revenues comparing the three months ended March 31, 2025 to the three months ended March 31, 2024:
| Amount | |||||
| (In Millions) | |||||
| 2024 operating revenues | $622.0 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | (59.6) | ||||
| Retail electric price | 16.2 | ||||
| Volume/weather | 34.9 | ||||
| 2025 operating revenues | $613.5 |
Entergy Arkansas’s 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 retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2025. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing.
The volume/weather variance is primarily due to an increase in industrial usage and the effect of more favorable weather on residential sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the primary metals and technology industries, and an increase in demand from small industrial customers.
Entergy Arkansas, LLC and Subsidiaries
Management's Financial Discussion and Analysis
Total electric energy sales for Entergy Arkansas for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 2,210 | 1,966 | 12 | ||||||||||||||
| Commercial | 1,260 | 1,280 | (2) | ||||||||||||||
| Industrial | 2,542 | 2,268 | 12 | ||||||||||||||
| Governmental | 39 | 46 | (15) | ||||||||||||||
| Total retail | 6,051 | 5,560 | 9 | ||||||||||||||
| Sales for resale: | |||||||||||||||||
| Associated companies | 536 | 462 | 16 | ||||||||||||||
| Non-associated companies | 563 | 966 | (42) | ||||||||||||||
| Total | 7,150 | 6,988 | 2 |
See Note 12 to the financial statements herein for additional discussion of Entergy Arkansas’s operating revenues.
Other Income Statement Variances
Fuel, fuel-related expenses, and gas purchased for resale includes a credit of $9 million, recorded in first quarter 2024, for costs related to net metering. The costs were incurred in 2023 and included within Entergy Arkansas’s annual redetermination of its energy cost recovery rider filed in March 2024 due to a change in law in the state of Arkansas. See Note 2 to the financial statements in the Form 10-K for discussion of the March 2024 energy cost recovery rider filing.
Other operation and maintenance expenses decreased primarily due to a decrease of $4.1 million in power delivery expenses primarily due to lower scope of work performed in 2025 as compared to 2024 and contract costs of $2.9 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives.
Asset write-offs includes a $131.8 million charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the opportunity sales proceeding.
Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Walnut Bend Solar facility, which was placed in service in September 2024, and the West Memphis Solar facility and the Driver Solar facility, which were placed in service in December 2024.
Entergy Arkansas 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.
Interest expense increased primarily due to the issuances of $400 million of 5.75% Series mortgage bonds and $400 million of 5.45% Series mortgage bonds, each in May 2024. The increase was partially offset by the repayment of $375 million of 3.70% Series mortgage bonds in June 2024.
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Income Taxes
The effective income tax rate was 21% for the first quarter 2025. The accrual for state income taxes was offset by certain book and tax differences related to utility plant items and the amortization of excess state accumulated deferred income taxes as a result of tax rate changes.
The effective income tax rate was 24.8% 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 certain book and tax differences related to utility plant items and the accrual for state income taxes, partially offset by the amortization of state accumulated deferred income taxes as a result of tax rate changes.
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.
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $4,747 | $3,632 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 257,177 | 287,251 | |||||||||
| Investing activities | (161,111) | (371,389) | |||||||||
| Financing activities | (45,753) | 126,073 | |||||||||
| Net increase in cash and cash equivalents | 50,313 | 41,935 | |||||||||
| Cash and cash equivalents at end of period | $55,060 | $45,567 |
Operating Activities
Net cash flow provided by operating activities decreased $30.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:
-
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;
-
lower collections from customers; and
-
higher fuel and purchased power payments.
Investing Activities
Net cash flow used in investing activities decreased $210.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:
- the initial payment of approximately $169.7 million in February 2024 for the purchase of the Walnut Bend Solar facility;
Entergy Arkansas, LLC and Subsidiaries
Management's Financial Discussion and Analysis
-
a decrease of $27.5 million in information technology capital expenditures primarily due to decreased spending on various technology projects in 2025;
-
a decrease of $27.4 million in transmission construction expenditures primarily due to decreased spending on various transmission projects in 2025; and
-
net proceeds of $12.3 million in 2025 compared to net purchases of $11.2 million in 2024 as a result of fluctuations in nuclear fuel activity 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.
The decrease was partially offset by an increase of $21.3 million in distribution construction expenditures primarily due to higher capital expenditures for storm restoration in 2025 and an increase of $11.7 million in non-nuclear generation construction expenditures primarily due to a higher scope of work during plant outages performed in 2025 as compared to 2024.
See Note 14 to the financial statements in the Form 10-K for discussion of the Walnut Bend Solar facility purchase.
Financing Activities
Entergy Arkansas’s financing activities used $45.8 million of cash for the three months ended March 31, 2025 compared to providing $126.1 million of cash for the three months ended March 31, 2024 primarily due to the following activity:
-
a capital contribution of approximately $275 million received from Entergy Corporation in 2024 in anticipation of upcoming expenditures, including the acquisition of the Walnut Bend Solar facility;
-
the issuance of $70 million of 5.54% Series O notes by the Entergy Arkansas nuclear fuel company variable interest entity in March 2024;
-
a decrease in net repayments of $53.1 million on the nuclear fuel company variable interest entity’s credit facility; and
-
money pool activity.
Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $15.2 million for the three months ended March 31, 2025 compared to decreasing by $145.4 million for the three months ended March 31, 2024. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.
Capital Structure
Entergy Arkansas’s debt to capital ratio is shown in the following table.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 53.1 | % | 53.6 | % | |||||||
| Effect of subtracting cash | (0.3 | %) | — | % | |||||||
| Net debt to net capital (non-GAAP) | 52.8 | % | 53.6 | % |
Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
capital consists of capital less cash and cash equivalents. Entergy Arkansas uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Arkansas also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition because net debt indicates Entergy Arkansas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Arkansas’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy Arkansas’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy Arkansas’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy Arkansas’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 Arkansas’s ability to access needed capital. The nature and extent of any such 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.
Entergy Arkansas’s receivables from or (payables to) the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $9,608 | ($15,190) | $8,505 | ($145,385) |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
Entergy Arkansas has a credit facility in the amount of $300 million scheduled to expire in June 2029. Entergy Arkansas also has a $25 million credit facility scheduled to expire in April 2026. The $300 million credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of March 31, 2025, there were no cash borrowings under either credit facility and no letters of credit outstanding under the $300 million credit facility. In addition, Entergy Arkansas is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of March 31, 2025, $17.1 million in letters of credit were outstanding under Entergy Arkansas’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.
The Entergy Arkansas nuclear fuel company variable interest entity has a credit facility in the amount of $80 million scheduled to expire in June 2027. As of March 31, 2025, there were $5.4 million in loans outstanding under the credit facility for the Entergy Arkansas nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for discussion of the nuclear fuel company variable interest entity credit facility.
Entergy Arkansas, LLC and Subsidiaries
Management's Financial Discussion and Analysis
Lake Catherine Unit 5
As discussed in the Form 10-K, in November 2024, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Lake Catherine Unit 5, a 446 MW hydrogen-capable simple-cycle natural gas combustion turbine facility to be located at the existing Lake Catherine facility site in Hot Spring County, Arkansas. In December 2024 other parties, including the APSC general staff, filed testimony opposing the resource, although the APSC general staff recognized the capacity need for the resource. Entergy Arkansas filed testimony in January 2025 further supporting its application, and in February 2025 the opposing parties filed responsive rebuttal testimony continuing to dispute the estimated costs and to dispute that Entergy Arkansas performed a market solicitation sufficient to demonstrate that this resource is the most reasonable option for customers. Also in February 2025, Entergy Arkansas filed surrebuttal testimony responding to the opposing parties’ testimony. A hearing was held in March 2025, and in April 2025 the APSC issued an order approving certification of the facility. The order also provided a presumption of prudence finding with respect to a benchmark project cost, which excluded AFUDC and contingency among other items. Entergy Arkansas will have the opportunity to later present all actual costs to the APSC for review for a prudence determination, including any costs incremental to the benchmark. Entergy Arkansas is evaluating potential responses to the APSC order. Subject to receipt of required regulatory approval and other conditions, the facility is expected to be in service by the end of 2028.
State and Local Rate Regulation and Fuel-Cost Recovery
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.
Retail Rates
Grand Gulf Credit Rider
As discussed in the Form 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 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 “Energy Cost Recovery Rider” below. 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.
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 Rates - Grand Gulf Credit Rider” above 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
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
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.
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.
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.
Generating Arkansas Jobs Act of 2025
In March 2025 the State of Arkansas passed the Generating Arkansas Jobs Act of 2025, now Act 373 (Act 373), that authorizes the recovery of financing costs during construction of generation and transmission investments through a rider separate from the formula rate plan. Act 373 also permits cost recovery of those investments when completed and in service, either through the next general rate case proceeding or under the formula rate plan. Act 373 streamlines and simplifies the regulatory approval process and provides increased timeliness and certainty of cost recovery.
Federal Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 Arkansas’s
Entergy Arkansas, LLC and Subsidiaries
Management's Financial Discussion and Analysis
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 the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| ENTERGY ARKANSAS, LLC AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $613,511 | $622,045 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 47,559 | 106,439 | ||||||||||||||||||||||||
| Purchased power | 64,947 | 52,320 | ||||||||||||||||||||||||
| Nuclear refueling outage expenses | 10,581 | 14,088 | ||||||||||||||||||||||||
| Other operation and maintenance | 171,518 | 178,041 | ||||||||||||||||||||||||
| Asset write-offs | — | 131,775 | ||||||||||||||||||||||||
| Decommissioning | 24,622 | 22,647 | ||||||||||||||||||||||||
| Taxes other than income taxes | 35,981 | 36,224 | ||||||||||||||||||||||||
| Depreciation and amortization | 113,268 | 102,991 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | (5,117) | 48,619 | ||||||||||||||||||||||||
| TOTAL | 463,359 | 693,144 | ||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 150,152 | (71,099) | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 4,262 | 5,532 | ||||||||||||||||||||||||
| Interest and investment income | 13,579 | 72,760 | ||||||||||||||||||||||||
| Miscellaneous - net | (2,778) | (3,581) | ||||||||||||||||||||||||
| TOTAL | 15,063 | 74,711 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 57,743 | 49,265 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (2,053) | (2,699) | ||||||||||||||||||||||||
| TOTAL | 55,690 | 46,566 | ||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 109,525 | (42,954) | ||||||||||||||||||||||||
| Income taxes | 23,002 | (10,674) | ||||||||||||||||||||||||
| NET INCOME (LOSS) | 86,523 | (32,280) | ||||||||||||||||||||||||
| Net loss attributable to noncontrolling interest | (1,191) | (1,818) | ||||||||||||||||||||||||
| EARNINGS (LOSS) APPLICABLE TO MEMBER'S EQUITY | $87,714 | ($30,462) | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
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| ENTERGY ARKANSAS, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income (loss) | $86,523 | ($32,280) | ||||||||||||
| Adjustments to reconcile net income (loss) to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 159,997 | 144,309 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 38,647 | 8,754 | ||||||||||||
| Asset write-offs | — | 131,775 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | 20,884 | 27,640 | ||||||||||||
| Fuel inventory | (6,636) | (289) | ||||||||||||
| Accounts payable | (10,943) | (36,137) | ||||||||||||
| Taxes accrued | (1,370) | 4,735 | ||||||||||||
| Interest accrued | 25,947 | 16,868 | ||||||||||||
| Deferred fuel costs | (42,248) | 18,179 | ||||||||||||
| Other working capital accounts | (1,447) | 13,059 | ||||||||||||
| Provisions for estimated losses | 4,441 | 4,387 | ||||||||||||
| Other regulatory assets | 10,149 | 197,825 | ||||||||||||
| Other regulatory liabilities | (47,940) | 21,357 | ||||||||||||
| Pension and other postretirement funded status | (13,269) | (15,541) | ||||||||||||
| Other assets and liabilities | 34,442 | (217,390) | ||||||||||||
| Net cash flow provided by operating activities | 257,177 | 287,251 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (156,345) | (180,227) | ||||||||||||
| Allowance for equity funds used during construction | 4,262 | 5,532 | ||||||||||||
| Payment for purchase of plant | (1,282) | (169,694) | ||||||||||||
| Nuclear fuel purchases | (28,000) | (44,445) | ||||||||||||
| Proceeds from sale of nuclear fuel | 40,260 | 33,213 | ||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 23,272 | 204,049 | ||||||||||||
| Investment in nuclear decommissioning trust funds | (33,721) | (211,342) | ||||||||||||
| Changes in money pool receivable - net | (9,608) | (8,505) | ||||||||||||
| Decrease in other investments | 51 | 30 | ||||||||||||
| Net cash flow used in investing activities | (161,111) | (371,389) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 17,607 | 179,937 | ||||||||||||
| Retirement of long-term debt | (34,905) | (180,405) | ||||||||||||
| Capital contribution from parent | — | 275,000 | ||||||||||||
| Changes in money pool payable - net | (15,190) | (145,385) | ||||||||||||
| Other | (13,265) | (3,074) | ||||||||||||
| Net cash flow provided by (used in) financing activities | (45,753) | 126,073 | ||||||||||||
| Net increase in cash and cash equivalents | 50,313 | 41,935 | ||||||||||||
| Cash and cash equivalents at beginning of period | 4,747 | 3,632 | ||||||||||||
| Cash and cash equivalents at end of period | $55,060 | $45,567 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $31,134 | $31,793 | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $51,028 | $35,791 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY ARKANSAS, LLC 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 | $154 | $1,306 | ||||||||||||
| Temporary cash investments | 54,906 | 3,441 | ||||||||||||
| Total cash and cash equivalents | 55,060 | 4,747 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | 153,929 | 139,234 | ||||||||||||
| Allowance for doubtful accounts | (4,947) | (4,672) | ||||||||||||
| Associated companies | 47,076 | 35,412 | ||||||||||||
| Other | 57,008 | 70,927 | ||||||||||||
| Accrued unbilled revenues | 102,383 | 125,824 | ||||||||||||
| Total accounts receivable | 355,449 | 366,725 | ||||||||||||
| Fuel inventory - at average cost | 56,573 | 49,937 | ||||||||||||
| Materials and supplies | 394,613 | 384,238 | ||||||||||||
| Deferred nuclear refueling outage costs | 37,611 | 48,879 | ||||||||||||
| Prepayments and other | 45,215 | 41,404 | ||||||||||||
| TOTAL | 944,521 | 895,930 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Decommissioning trust funds | 1,571,159 | 1,604,428 | ||||||||||||
| Other | 796 | 797 | ||||||||||||
| TOTAL | 1,571,955 | 1,605,225 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 16,407,844 | 16,371,182 | ||||||||||||
| Construction work in progress | 434,808 | 320,447 | ||||||||||||
| Nuclear fuel | 200,749 | 257,533 | ||||||||||||
| TOTAL UTILITY PLANT | 17,043,401 | 16,949,162 | ||||||||||||
| Less - accumulated depreciation and amortization | 6,367,812 | 6,275,150 | ||||||||||||
| UTILITY PLANT - NET | 10,675,589 | 10,674,012 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | 1,689,961 | 1,700,110 | ||||||||||||
| Other | 210,061 | 198,706 | ||||||||||||
| TOTAL | 1,900,022 | 1,898,816 | ||||||||||||
| TOTAL ASSETS | $15,092,087 | $15,073,983 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY ARKANSAS, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| March 31, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | $39,988 | $85,137 | ||||||||||||
| Other | 219,594 | 210,040 | ||||||||||||
| Customer deposits | 131,951 | 129,267 | ||||||||||||
| Taxes accrued | 91,845 | 93,215 | ||||||||||||
| Interest accrued | 64,324 | 38,377 | ||||||||||||
| Deferred fuel costs | 2,910 | 45,158 | ||||||||||||
| Other | 54,834 | 55,313 | ||||||||||||
| TOTAL | 605,446 | 656,507 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 1,529,054 | 1,489,169 | ||||||||||||
| Accumulated deferred investment tax credits | 25,769 | 26,069 | ||||||||||||
| Regulatory liability for income taxes - net | 420,275 | 417,561 | ||||||||||||
| Other regulatory liabilities | 780,511 | 831,165 | ||||||||||||
| Decommissioning | 1,716,205 | 1,691,583 | ||||||||||||
| Accumulated provisions | 80,920 | 76,479 | ||||||||||||
| Long-term debt | 5,107,853 | 5,122,494 | ||||||||||||
| Other | 275,707 | 298,951 | ||||||||||||
| TOTAL | 9,936,294 | 9,953,471 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | 4,536,551 | 4,448,837 | ||||||||||||
| Noncontrolling interest | 13,796 | 15,168 | ||||||||||||
| TOTAL | 4,550,347 | 4,464,005 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $15,092,087 | $15,073,983 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY ARKANSAS, LLC AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Noncontrolling Interest | Member's Equity | Total | |||||||||||||||
| (In Thousands) | |||||||||||||||||
| Balance at December 31, 2023 | $21,599 | $3,739,071 | $3,760,670 | ||||||||||||||
| Net loss | (1,818) | (30,462) | (32,280) | ||||||||||||||
| Capital contribution from parent | — | 275,000 | 275,000 | ||||||||||||||
| Distributions to noncontrolling interest | (250) | — | (250) | ||||||||||||||
| Balance at March 31, 2024 | $19,531 | $3,983,609 | $4,003,140 | ||||||||||||||
| Balance at December 31, 2024 | $15,168 | $4,448,837 | $4,464,005 | ||||||||||||||
| Net income (loss) | (1,191) | 87,714 | 86,523 | ||||||||||||||
| Distributions to noncontrolling interest | (181) | — | (181) | ||||||||||||||
| Balance at March 31, 2025 | $13,796 | $4,536,551 | $4,550,347 | ||||||||||||||
| See Notes to Financial Statements. |
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Results of Operations
Net Income
Net income increased $71.5 million primarily due to higher volume/weather and higher other income, partially offset by higher interest expense and higher depreciation and amortization expense.
Operating Revenues
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 | $1,202.4 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | 43.3 | ||||
| Volume/weather | 33.3 | ||||
| Retail electric price | 22.5 | ||||
| 2025 operating revenues | $1,301.5 |
Entergy Louisiana’s 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 and chlor-alkali industries.
The retail electric price variance is primarily due to an increase in 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. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2023 formula rate plan proceeding.
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Total electric energy sales for Entergy Louisiana for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 3,169 | 2,815 | 13 | ||||||||||||||
| Commercial | 2,432 | 2,455 | (1) | ||||||||||||||
| Industrial | 8,533 | 7,761 | 10 | ||||||||||||||
| Governmental | 195 | 199 | (2) | ||||||||||||||
| Total retail | 14,329 | 13,230 | 8 | ||||||||||||||
| Sales for resale: | |||||||||||||||||
| Associated companies | 1,448 | 1,258 | 15 | ||||||||||||||
| Non-associated companies | 228 | 382 | (40) | ||||||||||||||
| Total | 16,005 | 14,870 | 8 |
See Note 12 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues.
Other Income Statement Variances
Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in nuclear depreciation rates effective September 2024 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.
Other income increased primarily due to higher interest earned on money pool investments, an increase in the 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. The increase was partially offset by changes in decommissioning trust fund activity, including portfolio rebalancing of the River Bend decommissioning trust fund in first quarter 2024.
Interest expense increased primarily due to the issuance of $700 million of 5.15% Series mortgage bonds in August 2024 and the issuance of $750 million of 5.80% Series mortgage bonds in January 2025.
Income Taxes
The effective income tax rate was 17.5% 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 book and tax differences related to the non-taxable income distributions earned on preferred membership interests, book and tax differences related to the allowance for equity funds used during construction, and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.
The effective income tax rate was 17.6% 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 book and tax differences related to the non-taxable income distributions earned on preferred membership interests and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes and the amortization of deficient state accumulated deferred income taxes as a result of tax rate changes.
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
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.
Sale of Natural Gas Distribution Business
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 discussion of the planned sale of Entergy Louisiana’s gas distribution business.
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $327,102 | $2,772 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 273,135 | 304,836 | |||||||||
| Investing activities | (696,217) | (483,943) | |||||||||
| Financing activities | 488,225 | 949,534 | |||||||||
| Net increase in cash and cash equivalents | 65,143 | 770,427 | |||||||||
| Cash and cash equivalents at end of period | $392,245 | $773,199 |
Operating Activities
Net cash flow provided by operating activities decreased $31.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to higher fuel and purchased power payments and the timing of recovery of fuel and purchased power costs, the timing of payments to vendors, and an increase of $61.1 million in interest paid. The decrease was partially offset by higher collections from customers. 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 $212.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:
-
an increase of $114.4 million in non-nuclear generation construction expenditures primarily due to higher spending on new generation resources in north Louisiana;
-
an increase of $107.7 million in distribution construction expenditures primarily due to increased investment in the resilience of the 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 in cash used of $102.3 million as a result of fluctuations in nuclear fuel activity 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;
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
-
an increase of $88.6 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2025; and
-
an increase of $53 million in transmission construction expenditures primarily due to increased spending on various transmission projects in 2025.
The increase was partially offset by:
-
money pool activity;
-
a decrease of $29.1 million in information technology capital expenditures primarily due to decreased spending on various technology projects in 2025; and
-
the receipt of $33.5 million from the storm reserve escrow account in 2025. See Note 2 to the financial statements herein for a discussion of the storm reserve funds.
Increases in Entergy Louisiana’s receivable from the money pool are a use of cash flow, and Entergy Louisiana’s receivable from the money pool increased $39.1 million for the three months ended March 31, 2025 compared to increasing by $218.1 million for the three months ended March 31, 2024. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
Financing Activities
Net cash flow provided by financing activities decreased $461.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:
-
the issuances of $500 million of 5.35% Series mortgage bonds and $700 million of 5.70% Series mortgage bonds in March 2024;
-
the repayment, prior to maturity, of $190 million of 3.78% Series mortgage bonds in March 2025;
-
the repayment, prior to maturity, of $110 million of 3.78% Series mortgage bonds in March 2025; and
-
a decrease of $35.5 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements.
The decrease was partially offset by:
-
the issuance of $750 million of 5.80% Series mortgage bonds in January 2025;
-
money pool activity;
-
net long-term borrowings of $100 million in 2025 compared to net repayments of $6 million in 2024 on the nuclear fuel company variable interest entities’ credit facilities; and
-
a decrease of $61.3 million in common equity distributions paid in 2025 in order to maintain Entergy Louisiana’s capital structure.
Decreases in Entergy Louisiana’s payable to the money pool are a use of cash flow, and Entergy Louisiana’s payable to the money pool decreased $156.2 million for the three months ended March 31, 2024.
See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Capital Structure
Entergy Louisiana’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Louisiana is primarily due to the net issuance of long-term debt in 2025.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 46.9 | % | 46.0 | % | |||||||
| Effect of subtracting cash | (1.0 | %) | (0.8 | %) | |||||||
| Net debt to net capital (non-GAAP) | 45.9 | % | 45.2 | % |
Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Louisiana uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Louisiana also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition because net debt indicates Entergy Louisiana’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Louisiana’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy Louisiana’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy Louisiana’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy Louisiana’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 Louisiana’s ability to access needed capital. The nature and extent of any such 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.
Entergy Louisiana’s receivables from or (payables to) the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $71,805 | $32,668 | $218,098 | ($156,166) |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
Entergy Louisiana has a credit facility in the amount of $400 million scheduled to expire in June 2029. The credit facility includes fronting commitments for the issuance of letters of credit against $15 million of the borrowing capacity of the facility. As of March 31, 2025, there were no cash borrowings and no letters of credit
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
outstanding under the credit facility. In addition, Entergy Louisiana is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of March 31, 2025, $56.2 million in letters of credit were outstanding under Entergy Louisiana’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.
The Entergy Louisiana nuclear fuel company variable interest entities have two separate credit facilities, each in the amount of $105 million and scheduled to expire in June 2027. As of March 31, 2025, $72.3 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity and $65.3 million in loans were outstanding under the credit facility for the Entergy Louisiana Waterford nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for additional discussion of the nuclear fuel company variable interest entity credit facilities.
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, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
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 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.
State and Local Rate Regulation and Fuel-Cost Recovery
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.
Retail Rates
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
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
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 Note 2 to the financial statements herein. 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.
Fuel and purchased power cost recovery
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.
Storm Cost Recovery
In March 2025, Entergy Louisiana filed an application asking that the LPSC issue an order establishing a presumption, in future proceedings involving Entergy Louisiana’s petition for a financing order allowing securitization of storm costs, that the LPSC will enter a decision on the request for a financing order within 120 days from the date of the filing of the petition, while preserving the LPSC’s jurisdiction to complete its full prudence review. A procedural schedule has not been set.
Industrial and Commercial Customers
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers” in the Form 10-K for a discussion of industrial and commercial customers.
Federal Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 Louisiana’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| ENTERGY LOUISIANA, LLC AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $1,271,946 | $1,172,793 | ||||||||||||||||||||||||
| Natural gas | 29,601 | 29,647 | ||||||||||||||||||||||||
| TOTAL | 1,301,547 | 1,202,440 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 213,852 | 240,087 | ||||||||||||||||||||||||
| Purchased power | 261,788 | 200,280 | ||||||||||||||||||||||||
| Nuclear refueling outage expenses | 18,371 | 17,513 | ||||||||||||||||||||||||
| Other operation and maintenance | 258,037 | 260,979 | ||||||||||||||||||||||||
| Decommissioning | 19,417 | 19,664 | ||||||||||||||||||||||||
| Taxes other than income taxes | 66,221 | 69,839 | ||||||||||||||||||||||||
| Depreciation and amortization | 197,622 | 189,544 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | (47,233) | (8,354) | ||||||||||||||||||||||||
| TOTAL | 988,075 | 989,552 | ||||||||||||||||||||||||
| OPERATING INCOME | 313,472 | 212,888 | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 15,206 | 7,285 | ||||||||||||||||||||||||
| Interest and investment income | 1,088 | 62,963 | ||||||||||||||||||||||||
| Interest and investment income - affiliated | 76,571 | 80,404 | ||||||||||||||||||||||||
| Miscellaneous - net | 17,071 | (47,175) | ||||||||||||||||||||||||
| TOTAL | 109,936 | 103,477 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 121,334 | 97,195 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (6,185) | (2,477) | ||||||||||||||||||||||||
| TOTAL | 115,149 | 94,718 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 308,259 | 221,647 | ||||||||||||||||||||||||
| Income taxes | 54,062 | 38,924 | ||||||||||||||||||||||||
| NET INCOME | 254,197 | 182,723 | ||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 752 | 795 | ||||||||||||||||||||||||
| EARNINGS APPLICABLE TO MEMBER'S EQUITY | $253,445 | $181,928 | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
| ENTERGY LOUISIANA, LLC AND SUBSIDIARIES | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||
| Net Income | $254,197 | $182,723 | |||||||||||||||||||||
| Other comprehensive loss | |||||||||||||||||||||||
| Pension and other postretirement adjustment (net of tax benefit of $1,884, and $746) | (971) | (2,024) | |||||||||||||||||||||
| Other comprehensive loss | (971) | (2,024) | |||||||||||||||||||||
| Comprehensive Income | 253,226 | 180,699 | |||||||||||||||||||||
| Net income attributable to noncontrolling interests | 752 | 795 | |||||||||||||||||||||
| Comprehensive Income Applicable to Member’s Equity | $252,474 | $179,904 | |||||||||||||||||||||
| See Notes to Financial Statements. |
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| ENTERGY LOUISIANA, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $254,197 | $182,723 | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 235,886 | 226,874 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 154,018 | 126,334 | ||||||||||||
| Changes in working capital: | ||||||||||||||
| Receivables | (30,919) | 39,860 | ||||||||||||
| Fuel inventory | 2,458 | 4,236 | ||||||||||||
| Accounts payable | (15,853) | (109,430) | ||||||||||||
| Prepaid taxes and taxes accrued | (57,828) | (26,684) | ||||||||||||
| Interest accrued | (47,251) | (9,995) | ||||||||||||
| Deferred fuel costs | (120,941) | 6,940 | ||||||||||||
| Other working capital accounts | (6,688) | (101,798) | ||||||||||||
| Changes in provisions for estimated losses | (25,824) | 5,497 | ||||||||||||
| Changes in other regulatory assets | 65,140 | 11,834 | ||||||||||||
| Changes in other regulatory liabilities | (101,039) | 51,414 | ||||||||||||
| Changes in pension and other postretirement funded status | (10,612) | (12,466) | ||||||||||||
| Other | (21,609) | (90,503) | ||||||||||||
| Net cash flow provided by operating activities | 273,135 | 304,836 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (658,846) | (327,980) | ||||||||||||
| Allowance for equity funds used during construction | 15,206 | 7,285 | ||||||||||||
| Proceeds from sale of assets | 366 | — | ||||||||||||
| Nuclear fuel purchases | (112,379) | (48,914) | ||||||||||||
| Proceeds from sale of nuclear fuel | — | 38,790 | ||||||||||||
| Payments to storm reserve escrow account | (2,728) | (3,299) | ||||||||||||
| Receipt from storm reserve escrow account | 33,456 | — | ||||||||||||
| Redemption of preferred membership interests of affiliate | 88,022 | 85,027 | ||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 158,694 | 149,334 | ||||||||||||
| Investment in nuclear decommissioning trust funds | (178,871) | (166,123) | ||||||||||||
| Changes in money pool receivable - net | (39,137) | (218,098) | ||||||||||||
| Decrease in other investments | — | 35 | ||||||||||||
| Net cash flow used in investing activities | (696,217) | (483,943) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 1,088,338 | 1,693,150 | ||||||||||||
| Retirement of long-term debt | (551,009) | (513,009) | ||||||||||||
| Change in money pool payable - net | — | (156,166) | ||||||||||||
| Common equity distributions paid | (36,250) | (97,500) | ||||||||||||
| Other | (12,854) | 23,059 | ||||||||||||
| Net cash flow provided by financing activities | 488,225 | 949,534 | ||||||||||||
| Net increase in cash and cash equivalents | 65,143 | 770,427 | ||||||||||||
| Cash and cash equivalents at beginning of period | 327,102 | 2,772 | ||||||||||||
| Cash and cash equivalents at end of period | $392,245 | $773,199 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $166,286 | $105,176 | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $251,166 | $84,035 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY LOUISIANA, LLC 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 | $211 | $327 | ||||||||||||
| Temporary cash investments | 392,034 | 326,775 | ||||||||||||
| Total cash and cash equivalents | 392,245 | 327,102 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | 329,591 | 294,089 | ||||||||||||
| Allowance for doubtful accounts | (3,148) | (3,036) | ||||||||||||
| Associated companies | 153,893 | 103,055 | ||||||||||||
| Other | 40,755 | 39,056 | ||||||||||||
| Accrued unbilled revenues | 195,155 | 213,026 | ||||||||||||
| Total accounts receivable | 716,246 | 646,190 | ||||||||||||
| Deferred fuel costs | 113,571 | — | ||||||||||||
| Fuel inventory - at average cost | 46,957 | 49,515 | ||||||||||||
| Materials and supplies | 680,242 | 782,459 | ||||||||||||
| Deferred nuclear refueling outage costs | 44,786 | 31,121 | ||||||||||||
| Prepaid taxes | 30,081 | — | ||||||||||||
| Current assets held for sale | 4,680 | 2,474 | ||||||||||||
| Prepayments and other | 181,405 | 84,236 | ||||||||||||
| TOTAL | 2,210,213 | 1,923,097 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Investment in affiliate preferred membership interests | 4,168,974 | 4,256,997 | ||||||||||||
| Decommissioning trust funds | 2,378,235 | 2,429,088 | ||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 453,908 | 410,611 | ||||||||||||
| Storm reserve escrow account | 225,990 | 256,718 | ||||||||||||
| Other | 9,831 | 9,749 | ||||||||||||
| TOTAL | 7,236,938 | 7,363,163 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 29,010,385 | 28,736,547 | ||||||||||||
| Natural gas | 34,133 | 33,775 | ||||||||||||
| Construction work in progress | 1,217,409 | 761,090 | ||||||||||||
| Nuclear fuel | 350,069 | 288,084 | ||||||||||||
| TOTAL UTILITY PLANT | 30,611,996 | 29,819,496 | ||||||||||||
| Less - accumulated depreciation and amortization | 10,894,148 | 10,794,817 | ||||||||||||
| UTILITY PLANT - NET | 19,717,848 | 19,024,679 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | 1,572,870 | 1,637,967 | ||||||||||||
| Deferred fuel costs | 168,122 | 168,122 | ||||||||||||
| Non-current assets held for sale | 176,579 | 173,669 | ||||||||||||
| Other | 76,176 | 57,853 | ||||||||||||
| TOTAL | 1,993,747 | 2,037,611 | ||||||||||||
| TOTAL ASSETS | $31,158,746 | $30,348,550 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY LOUISIANA, LLC 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 | $250,000 | $300,000 | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | 64,963 | 108,688 | ||||||||||||
| Other | 669,116 | 533,087 | ||||||||||||
| Customer deposits | 170,677 | 169,544 | ||||||||||||
| Taxes accrued | — | 29,002 | ||||||||||||
| Interest accrued | 72,935 | 120,186 | ||||||||||||
| Deferred fuel costs | — | 5,421 | ||||||||||||
| Customer advances | 150,967 | 151,662 | ||||||||||||
| Other | 92,939 | 96,426 | ||||||||||||
| TOTAL | 1,471,597 | 1,514,016 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 2,649,356 | 2,477,954 | ||||||||||||
| Accumulated deferred investment tax credits | 87,553 | 88,679 | ||||||||||||
| Regulatory liability for income taxes - net | 343,434 | 355,432 | ||||||||||||
| Other regulatory liabilities | 1,602,433 | 1,692,547 | ||||||||||||
| Decommissioning | 1,861,362 | 1,842,855 | ||||||||||||
| Accumulated provisions | 253,799 | 279,623 | ||||||||||||
| Pension and other postretirement liabilities | 155,012 | 160,577 | ||||||||||||
| Long-term debt | 10,155,643 | 9,566,453 | ||||||||||||
| Customer advances for construction | 281,334 | 291,842 | ||||||||||||
| Other | 481,753 | 479,178 | ||||||||||||
| TOTAL | 17,871,679 | 17,235,140 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member’s equity | 11,720,213 | 11,503,030 | ||||||||||||
| Accumulated other comprehensive income | 52,687 | 53,658 | ||||||||||||
| Noncontrolling interests | 42,570 | 42,706 | ||||||||||||
| TOTAL | 11,815,470 | 11,599,394 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $31,158,746 | $30,348,550 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY LOUISIANA, LLC AND SUBSIDIARIES | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Noncontrolling Interests | Member’s Equity | Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||
| Balance at December 31, 2023 | $45,107 | $11,473,614 | $54,798 | $11,573,519 | |||||||||||||||||||
| Net income | 795 | 181,928 | — | 182,723 | |||||||||||||||||||
| Other comprehensive loss | — | — | (2,024) | (2,024) | |||||||||||||||||||
| Non-cash contribution from parent | — | 976 | — | 976 | |||||||||||||||||||
| Common equity distributions | — | (97,500) | — | (97,500) | |||||||||||||||||||
| Distributions to LURC | (858) | — | — | (858) | |||||||||||||||||||
| Other | — | (43) | — | (43) | |||||||||||||||||||
| Balance at March 31, 2024 | $45,044 | $11,558,975 | $52,774 | $11,656,793 | |||||||||||||||||||
| Balance at December 31, 2024 | $42,706 | $11,503,030 | $53,658 | $11,599,394 | |||||||||||||||||||
| Net income | 752 | 253,445 | — | 254,197 | |||||||||||||||||||
| Other comprehensive loss | — | — | (971) | (971) | |||||||||||||||||||
| Common equity distributions | — | (36,250) | — | (36,250) | |||||||||||||||||||
| Distributions to LURC | (888) | — | — | (888) | |||||||||||||||||||
| Other | — | (12) | — | (12) | |||||||||||||||||||
| Balance at March 31, 2025 | $42,570 | $11,720,213 | $52,687 | $11,815,470 | |||||||||||||||||||
| See Notes to Financial Statements. |
ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Results of Operations
Net Income
Net income increased $19.4 million primarily due to higher retail electric price and higher volume/weather, partially offset by a regulatory charge, recorded in the first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance.
Operating Revenues
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 | $414.9 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | (34.3) | ||||
| Retail electric price | 24.1 | ||||
| Volume/weather | 19.0 | ||||
| 2025 operating revenues | $423.7 |
Entergy Mississippi’s 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 retail electric price variance is primarily due to increases in formula rate plan rates effective April 2024 and July 2024 and an increase in the interim facilities rate adjustment revenues effective January 2025. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2024 formula rate plan filings, including the interim facilities rate adjustment.
The volume/weather variance is primarily due to an increase in industrial usage and the effect of more favorable weather on residential sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily from new customers in the technology industry, and an increase in demand from small industrial customers.
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Total electric energy sales for Entergy Mississippi for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 1,311 | 1,186 | 11 | ||||||||||||||
| Commercial | 1,002 | 963 | 4 | ||||||||||||||
| Industrial | 526 | 494 | 6 | ||||||||||||||
| Governmental | 89 | 87 | 2 | ||||||||||||||
| Total retail | 2,928 | 2,730 | 7 | ||||||||||||||
| Sales for resale: | |||||||||||||||||
| Non-associated companies | 694 | 1,988 | (65) | ||||||||||||||
| Total | 3,622 | 4,718 | (23) |
See Note 12 to the financial statements herein for additional discussion of Entergy Mississippi’s operating revenues.
Other Income Statement Variances
Other operation and maintenance expenses increased primarily due to an increase of $4.2 million in storm damage provisions and an increase of $3.5 million in power delivery expenses primarily due to higher vegetation maintenance costs. See Note 2 to the financial statements in the Form 10-K for discussion of Entergy Mississippi’s storm damage mitigation and restoration rider.
Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.
Other regulatory charges (credits) – net includes a regulatory charge of $21 million, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance.
Other income increased primarily due to an increase in the amortization of tax gross ups on customer advances for construction and an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025.
Interest expense increased primarily due to carrying costs on customer advances for construction and the issuance of $300 million of 5.85% Series mortgage bonds in May 2024.
Income Taxes
The effective income tax rates were 24.1% for the first quarter 2025 and 22.2% for the first quarter 2024. The differences in the effective income tax rates for the first quarter 2025 and the first quarter 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.
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 Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $155,693 | $6,630 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 120,105 | 34,401 | |||||||||
| Investing activities | (432,064) | (112,436) | |||||||||
| Financing activities | 754,423 | 73,530 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 442,464 | (4,505) | |||||||||
| Cash and cash equivalents at end of period | $598,157 | $2,125 |
Operating Activities
Net cash flow provided by operating activities increased $85.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the receipt of $108.4 million in advance payments related to customer agreements and higher collections from customers, including $25 million of deferred revenue. The increase was partially offset by:
-
the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery;
-
the timing of payments to vendors; and
-
higher fuel and purchased power payments.
Investing Activities
Net cash flow used in investing activities increased $319.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to an increase of $239 million in non-nuclear generation construction expenditures primarily due to higher spending on the Delta Blues Advanced Power Station project, the Penton Solar project, and other non-nuclear generation projects and money pool activity.
Increases in Entergy Mississippi’s receivable from the money pool are a use of cash flow, and Entergy Mississippi’s receivable from the money pool increased $94.3 million for the three months ended March 31, 2025. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
Financing Activities
Net cash flow provided by financing activities increased $680.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to:
-
the issuance of $600 million of 5.80% Series mortgage bonds in March 2025;
-
an increase of $107.6 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements;
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
-
a capital contribution of $62.5 million received from Entergy Corporation in order to maintain Entergy Mississippi’s capital structure; and
-
money pool activity.
The increase was partially offset by borrowings of $100 million in 2024 on Entergy Mississippi’s credit facility.
Decreases in Entergy Mississippi’s payable to the money pool are a use of cash flow, and Entergy Mississippi’s payable to the money pool decreased by $17.5 million for the three months ended March 31, 2024.
See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.
Capital Structure
Entergy Mississippi’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Mississippi is primarily due to net issuance of long-term debt in 2025.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 54.7 | % | 50.4 | % | |||||||
| Effect of subtracting cash | (5.4 | %) | (1.6 | %) | |||||||
| Net debt to net capital (non-GAAP) | 49.3 | % | 48.8 | % |
Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Mississippi uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Mississippi uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition because net debt indicates Entergy Mississippi’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Mississippi’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy Mississippi’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy Mississippi’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy Mississippi’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 Mississippi’s ability to access needed capital. The nature and extent of any such 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.
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Entergy Mississippi’s receivables from or (payables to) the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $109,532 | $15,218 | ($56,220) | ($73,769) |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
Entergy Mississippi has a credit facility in the amount of $300 million scheduled to expire in June 2029. The credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of March 31, 2025, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Mississippi is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO and for other purposes. As of March 31, 2025, $31.3 million in MISO letters of credit and $1.3 million in non-MISO letters of credit were outstanding under this facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.
State and Local Rate Regulation and Fuel-Cost Recovery
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.
Retail Rates
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 additional approximately $1.0 million of costs over a 12-month period with rates effective with the first billing cycle of April 2025.
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Federal Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 Mississippi’s accounting for utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $423,709 | $414,856 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 26,051 | 117,850 | ||||||||||||||||||||||||
| Purchased power | 87,511 | 67,655 | ||||||||||||||||||||||||
| Other operation and maintenance | 78,800 | 71,206 | ||||||||||||||||||||||||
| Taxes other than income taxes | 43,510 | 38,310 | ||||||||||||||||||||||||
| Depreciation and amortization | 67,984 | 65,917 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | 35,587 | (6,491) | ||||||||||||||||||||||||
| TOTAL | 339,443 | 354,447 | ||||||||||||||||||||||||
| OPERATING INCOME | 84,266 | 60,409 | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 5,270 | 1,918 | ||||||||||||||||||||||||
| Interest and investment income | 2,317 | 193 | ||||||||||||||||||||||||
| Miscellaneous - net | 4,094 | (1,621) | ||||||||||||||||||||||||
| TOTAL | 11,681 | 490 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 36,180 | 26,397 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (2,016) | (747) | ||||||||||||||||||||||||
| TOTAL | 34,164 | 25,650 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 61,783 | 35,249 | ||||||||||||||||||||||||
| Income taxes | 14,917 | 7,817 | ||||||||||||||||||||||||
| NET INCOME | 46,866 | 27,432 | ||||||||||||||||||||||||
| Net loss attributable to noncontrolling interest | (2,479) | (2,302) | ||||||||||||||||||||||||
| EARNINGS APPLICABLE TO MEMBER'S EQUITY | $49,345 | $29,734 | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
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| ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $46,866 | $27,432 | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 67,984 | 65,917 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (42,852) | (9,162) | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | 12,853 | 36,151 | ||||||||||||
| Fuel inventory | 2,142 | (1,012) | ||||||||||||
| Accounts payable | (33,483) | (15,691) | ||||||||||||
| Taxes accrued | (45,531) | (75,046) | ||||||||||||
| Interest accrued | 16,507 | 5,960 | ||||||||||||
| Deferred fuel costs | (46,363) | 28,337 | ||||||||||||
| Other working capital accounts | 75,700 | (6,853) | ||||||||||||
| Provisions for estimated losses | (2,411) | (977) | ||||||||||||
| Other regulatory assets | 38,417 | (3,166) | ||||||||||||
| Other regulatory liabilities | 11,034 | (2,701) | ||||||||||||
| Pension and other postretirement funded status | (3,654) | (6,014) | ||||||||||||
| Other assets and liabilities | 22,896 | (8,774) | ||||||||||||
| Net cash flow provided by operating activities | 120,105 | 34,401 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (342,980) | (114,260) | ||||||||||||
| Allowance for equity funds used during construction | 5,270 | 1,918 | ||||||||||||
| Change in money pool receivable - net | (94,314) | — | ||||||||||||
| Increase in other investments | (40) | (94) | ||||||||||||
| Net cash flow used in investing activities | (432,064) | (112,436) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 593,201 | 99,860 | ||||||||||||
| Capital contribution from parent | 62,500 | — | ||||||||||||
| Change in money pool payable - net | — | (17,549) | ||||||||||||
| Other | 98,722 | (8,781) | ||||||||||||
| Net cash flow provided by financing activities | 754,423 | 73,530 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | 442,464 | (4,505) | ||||||||||||
| Cash and cash equivalents at beginning of period | 155,693 | 6,630 | ||||||||||||
| Cash and cash equivalents at end of period | $598,157 | $2,125 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $19,084 | $19,838 | ||||||||||||
| Income taxes | $— | $2,353 | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $129,085 | $43,943 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY MISSISSIPPI, LLC 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 | $141 | $184 | ||||||||||||
| Temporary cash investments | 598,016 | 155,509 | ||||||||||||
| Total cash and cash equivalents | 598,157 | 155,693 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | 109,059 | 97,609 | ||||||||||||
| Allowance for doubtful accounts | (2,074) | (2,172) | ||||||||||||
| Associated companies | 116,538 | 23,909 | ||||||||||||
| Other | 12,121 | 25,148 | ||||||||||||
| Accrued unbilled revenues | 66,051 | 75,740 | ||||||||||||
| Total accounts receivable | 301,695 | 220,234 | ||||||||||||
| Fuel inventory - at average cost | 12,821 | 14,963 | ||||||||||||
| Materials and supplies | 113,838 | 113,256 | ||||||||||||
| Prepayments and other | 51,825 | 19,764 | ||||||||||||
| TOTAL | 1,078,336 | 523,910 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | 4,478 | 4,482 | ||||||||||||
| Other | 920 | 880 | ||||||||||||
| TOTAL | 5,398 | 5,362 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 7,916,942 | 7,860,409 | ||||||||||||
| Construction work in progress | 739,110 | 487,273 | ||||||||||||
| TOTAL UTILITY PLANT | 8,656,052 | 8,347,682 | ||||||||||||
| Less - accumulated depreciation and amortization | 2,551,210 | 2,511,091 | ||||||||||||
| UTILITY PLANT - NET | 6,104,842 | 5,836,591 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | 487,430 | 525,847 | ||||||||||||
| Other | 104,509 | 97,260 | ||||||||||||
| TOTAL | 591,939 | 623,107 | ||||||||||||
| TOTAL ASSETS | $7,780,515 | $6,988,970 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| March 31, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | $53,243 | $58,087 | ||||||||||||
| Other | 248,751 | 283,755 | ||||||||||||
| Customer deposits | 96,819 | 94,009 | ||||||||||||
| Taxes accrued | 133,493 | 179,024 | ||||||||||||
| Interest accrued | 37,174 | 20,667 | ||||||||||||
| Deferred fuel costs | 79,953 | 126,316 | ||||||||||||
| Customer advances | 106,494 | — | ||||||||||||
| Other | 19,493 | 20,720 | ||||||||||||
| TOTAL | 775,420 | 782,578 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 831,951 | 870,116 | ||||||||||||
| Accumulated deferred investment tax credits | 13,340 | 13,446 | ||||||||||||
| Regulatory liability for income taxes - net | 178,278 | 180,851 | ||||||||||||
| Other regulatory liabilities | 73,151 | 59,544 | ||||||||||||
| Asset retirement cost liabilities | 25,460 | 25,110 | ||||||||||||
| Accumulated provisions | 44,789 | 47,200 | ||||||||||||
| Long-term debt | 3,020,618 | 2,427,073 | ||||||||||||
| Customer advances for construction | 212,028 | 112,618 | ||||||||||||
| Other | 87,126 | 61,446 | ||||||||||||
| TOTAL | 4,486,741 | 3,797,404 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | 2,512,631 | 2,400,786 | ||||||||||||
| Noncontrolling interest | 5,723 | 8,202 | ||||||||||||
| TOTAL | 2,518,354 | 2,408,988 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $7,780,515 | $6,988,970 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Noncontrolling Interest | Member's Equity | Total | |||||||||||||||
| (In Thousands) | |||||||||||||||||
| Balance at December 31, 2023 | $18,753 | $2,189,461 | $2,208,214 | ||||||||||||||
| Net income (loss) | (2,302) | 29,734 | 27,432 | ||||||||||||||
| Balance at March 31, 2024 | $16,451 | $2,219,195 | $2,235,646 | ||||||||||||||
| Balance at December 31, 2024 | $8,202 | $2,400,786 | $2,408,988 | ||||||||||||||
| Net income (loss) | (2,479) | 49,345 | 46,866 | ||||||||||||||
| Capital contribution from parent | — | 62,500 | 62,500 | ||||||||||||||
| Balance at March 31, 2025 | $5,723 | $2,512,631 | $2,518,354 | ||||||||||||||
| See Notes to Financial Statements. |
ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Results of Operations
Net Income
Entergy New Orleans had net income of $12.1 million for the three months ended March 31, 2025 compared to a net loss of $49.0 million for the three months ended March 31, 2024 primarily due to a $78.5 million ($57.4 million net-of-tax) regulatory charge, recorded 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. Also contributing to the net income were lower other operation and maintenance expenses, partially offset by higher interest expense. See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and discussion of the resolution of the 2016-2018 IRS audit.
Operating Revenues
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 | $193.0 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | (18.1) | ||||
| Retail electric price | 1.7 | ||||
| Volume/weather | 4.5 | ||||
| 2025 operating revenues | $181.1 |
Entergy New Orleans’s 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 retail electric price variance is primarily due to an increase in formula rate plan rates effective September 2024 in accordance with the terms of the 2024 formula rate plan filing. See Note 2 to the financial statements in the Form 10-K for discussion of the formula rate plan filing.
The volume/weather variance is primarily due to the effect of more favorable weather on residential sales, partially offset by a decrease in weather-adjusted residential usage.
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Total electric energy sales for Entergy New Orleans for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 534 | 480 | 11 | ||||||||||||||
| Commercial | 439 | 443 | (1) | ||||||||||||||
| Industrial | 72 | 85 | (15) | ||||||||||||||
| Governmental | 174 | 177 | (2) | ||||||||||||||
| Total retail | 1,219 | 1,185 | 3 | ||||||||||||||
| Sales for resale: | |||||||||||||||||
| Non-associated companies | 97 | 505 | (81) | ||||||||||||||
| Total | 1,316 | 1,690 | (22) |
See Note 12 to the financial statements herein for additional discussion of Entergy New Orleans’s operating revenues.
Other Income Statement Variances
Other operation and maintenance expenses decreased primarily due to:
-
a decrease of $1.5 million in loss provisions;
-
a decrease of $1.4 million in costs recognized related to credits provided to customers as part of the rate mitigation plan approved in the settlement of the 2023 formula rate plan filing. See Note 2 to the financial statements in the Form 10-K for discussion of the formula rate plan filing; and
-
contract costs of $0.8 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives.
Other regulatory charges (credits) - net includes a regulatory charge of $78.5 million, recorded 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 discussion of the resolution of the 2016-2018 IRS audit.
Interest expense increased primarily due to higher carrying costs related to higher regulatory liability balances and the issuances of $65 million of 6.41% Series mortgage bonds, $50 million of 6.54% Series mortgage bonds, and $35 million of 6.25% Series mortgage bonds, each in May 2024, partially offset by the repayment of an $85 million unsecured term loan in June 2024.
Income Taxes
The effective income tax rate was 23.6% 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.
The effective income tax rate was 28.3% 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 accrual for state income taxes.
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
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.
Sale of Natural Gas Distribution Business
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 Entergy New Orleans’s gas distribution business.
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $31,777 | $26 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 2,589 | 9,139 | |||||||||
| Investing activities | (21,851) | (36,893) | |||||||||
| Financing activities | 1,411 | 27,754 | |||||||||
| Net decrease in cash and cash equivalents | (17,851) | — | |||||||||
| Cash and cash equivalents at end of period | $13,926 | $26 |
Operating Activities
Net cash flow provided by operating activities decreased $6.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to lower collections from customers, partially offset by the timing of payments to vendors.
Investing Activities
Net cash flow used in investing activities decreased $15.0 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to net receipts of $9.5 million from the storm reserve escrow account in 2025 compared to payments of $1.9 million to the storm reserve escrow account in 2024.
Financing Activities
Net cash flow provided by financing activities decreased $26.3 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the repayment, at maturity, of $78 million of 3.00% Series mortgage bonds in March 2025 and money pool activity. The decrease was partially offset by proceeds received in March 2025 from an $80 million unsecured term loan due March 2026.
Increases in Entergy New Orleans’s payable to the money pool are a source of cash flow, and Entergy New Orleans’s payable to the money pool increased $28.1 million for the three months ended March 31, 2024. The money pool is an intercompany cash management program that makes possible intercompany borrowing and
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.
Capital Structure
Entergy New Orleans’s debt to capital ratio is shown in the following table.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 51.2 | % | 51.5 | % | |||||||
| Effect of subtracting cash | (0.5 | %) | (1.1 | %) | |||||||
| Net debt to net capital (non-GAAP) | 50.7 | % | 50.4 | % |
Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, long-term debt, including the currently maturing portion, and the long-term payable due to an associated company. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy New Orleans uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy New Orleans’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy New Orleans also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy New Orleans’s financial condition because net debt indicates Entergy New Orleans’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy New Orleans’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy New Orleans’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy New Orleans’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy New Orleans’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 New Orleans’s ability to access needed capital. The nature and extent of any such 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.
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Entergy New Orleans’s receivables from or (payables to) the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $2,549 | $3,146 | ($49,776) | ($21,651) |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
Entergy New Orleans has a credit facility in the amount of $25 million scheduled to expire in June 2027. The credit facility includes fronting commitments for the issuance of letters of credit against $10 million of the borrowing capacity of the facility. As of March 31, 2025, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy New Orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of March 31, 2025, a $0.5 million letter of credit was outstanding under Entergy New Orleans’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.
State and Local Rate Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation” in the Form 10-K for a discussion of state and local rate regulation. The following is an update to that discussion.
Retail Rates
2025 Formula Rate Plan Filing
In April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing. The 2024 evaluation report produced an electric earned return on equity of 10.98% and a gas earned return on equity of 8.96% compared to the authorized return on equity for each of 9.35%. Without adjustments, this would result in a decrease in electric rates of $13.8 million and no change in gas rates. The decrease in electric rates is driven by the realignment of regulatory liabilities into the formula from a separate rate mechanism, partially offset by the cost of known and measurable electric capital additions. The filing also commences the previously authorized recovery of certain regulatory costs and requests a revenue-neutral recovery to offset a proposed reduction in bill payment late fees. Taking into account these proposed adjustments, the filing presents a decrease in authorized electric revenues of $8.6 million and an increase in authorized gas revenues of $0.5 million. The filing is subject to a 75-day review period, followed by a 25-day period to resolve any disputes among the parties. For any disputed rate adjustments, however, the City Council would set a procedural schedule to resolve. Resulting rates will be effective with the first billing cycle of September 2025 pursuant to the formula rate plan tariff.
Federal Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 New Orleans’s accounting for utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $138,925 | $156,941 | ||||||||||||||||||||||||
| Natural gas | 42,130 | 36,020 | ||||||||||||||||||||||||
| TOTAL | 181,055 | 192,961 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 12,363 | 30,825 | ||||||||||||||||||||||||
| Purchased power | 67,741 | 60,382 | ||||||||||||||||||||||||
| Other operation and maintenance | 38,658 | 43,332 | ||||||||||||||||||||||||
| Taxes other than income taxes | 14,893 | 15,422 | ||||||||||||||||||||||||
| Depreciation and amortization | 21,845 | 20,914 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | (3,430) | 81,520 | ||||||||||||||||||||||||
| TOTAL | 152,070 | 252,395 | ||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 28,985 | (59,434) | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 306 | 378 | ||||||||||||||||||||||||
| Interest and investment income | 434 | 141 | ||||||||||||||||||||||||
| Miscellaneous - net | (579) | (29) | ||||||||||||||||||||||||
| TOTAL | 161 | 490 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 13,475 | 9,526 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (167) | (157) | ||||||||||||||||||||||||
| TOTAL | 13,308 | 9,369 | ||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 15,838 | (68,313) | ||||||||||||||||||||||||
| Income taxes | 3,739 | (19,333) | ||||||||||||||||||||||||
| NET INCOME (LOSS) | $12,099 | ($48,980) | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
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| ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income (loss) | $12,099 | ($48,980) | ||||||||||||
| Adjustments to reconcile net income (loss) to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 21,845 | 20,914 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | (31,821) | (25,534) | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | 10,089 | (89,009) | ||||||||||||
| Fuel inventory | 156 | 638 | ||||||||||||
| Accounts payable | (10,252) | (19,282) | ||||||||||||
| Prepaid taxes and taxes accrued | 35,139 | 8,632 | ||||||||||||
| Interest accrued | 2,436 | 1,132 | ||||||||||||
| Deferred fuel costs | (10,659) | 369 | ||||||||||||
| Other working capital accounts | (12,165) | (10,924) | ||||||||||||
| Provisions for estimated losses | (10,339) | 1,758 | ||||||||||||
| Other regulatory assets | 6,058 | 9,257 | ||||||||||||
| Other regulatory liabilities | (11,514) | 166,532 | ||||||||||||
| Pension and other postretirement funded status | (2,637) | (1,896) | ||||||||||||
| Other assets and liabilities | 4,154 | (4,468) | ||||||||||||
| Net cash flow provided by operating activities | 2,589 | 9,139 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (32,915) | (32,418) | ||||||||||||
| Allowance for equity funds used during construction | 306 | 378 | ||||||||||||
| Change in money pool receivable - net | 597 | — | ||||||||||||
| Receipt from storm reserve escrow account | 10,333 | — | ||||||||||||
| Payments to storm reserve escrow account | (870) | (1,877) | ||||||||||||
| Changes in securitization account | 698 | (2,976) | ||||||||||||
| Net cash flow used in investing activities | (21,851) | (36,893) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 79,717 | — | ||||||||||||
| Retirement of long-term debt | (78,000) | — | ||||||||||||
| Change in money pool payable - net | — | 28,125 | ||||||||||||
| Other | (306) | (371) | ||||||||||||
| Net cash flow provided by financing activities | 1,411 | 27,754 | ||||||||||||
| Net decrease in cash and cash equivalents | (17,851) | — | ||||||||||||
| Cash and cash equivalents at beginning of period | 31,777 | 26 | ||||||||||||
| Cash and cash equivalents at end of period | $13,926 | $26 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $10,795 | $8,047 | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $3,550 | $4,941 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY NEW ORLEANS, LLC 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 | $34 | $374 | ||||||||||||
| Temporary cash investments | 13,892 | 31,403 | ||||||||||||
| Total cash and cash equivalents | 13,926 | 31,777 | ||||||||||||
| Securitization recovery trust account | 913 | 1,611 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | 67,888 | 65,731 | ||||||||||||
| Allowance for doubtful accounts | (6,343) | (6,735) | ||||||||||||
| Associated companies | 4,440 | 5,844 | ||||||||||||
| Other | 3,733 | 9,467 | ||||||||||||
| Accrued unbilled revenues | 27,199 | 33,296 | ||||||||||||
| Total accounts receivable | 96,917 | 107,603 | ||||||||||||
| Deferred fuel costs | 11,918 | — | ||||||||||||
| Fuel inventory - at average cost | 1,251 | 320 | ||||||||||||
| Materials and supplies | 28,244 | 25,516 | ||||||||||||
| Current assets held for sale | 11,218 | 13,100 | ||||||||||||
| Prepayments and other | 19,834 | 12,128 | ||||||||||||
| TOTAL | 184,221 | 192,055 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Storm reserve escrow account | 74,279 | 83,742 | ||||||||||||
| Other | 832 | 832 | ||||||||||||
| TOTAL | 75,111 | 84,574 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 2,156,506 | 2,160,165 | ||||||||||||
| Natural gas | 43,396 | 43,279 | ||||||||||||
| Construction work in progress | 36,501 | 18,269 | ||||||||||||
| TOTAL UTILITY PLANT | 2,236,403 | 2,221,713 | ||||||||||||
| Less - accumulated depreciation and amortization | 778,749 | 768,305 | ||||||||||||
| UTILITY PLANT - NET | 1,457,654 | 1,453,408 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | 127,473 | 133,261 | ||||||||||||
| Deferred fuel costs | 4,080 | 4,080 | ||||||||||||
| Non-current assets held for sale | 286,317 | 284,738 | ||||||||||||
| Other | 74,782 | 71,037 | ||||||||||||
| TOTAL | 492,652 | 493,116 | ||||||||||||
| TOTAL ASSETS | $2,209,638 | $2,223,153 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY NEW ORLEANS, LLC 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 | $80,000 | $78,000 | ||||||||||||
| Payable due to associated company | 1,140 | 1,140 | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | 44,413 | 45,479 | ||||||||||||
| Other | 35,249 | 43,750 | ||||||||||||
| Customer deposits | 28,905 | 28,834 | ||||||||||||
| Taxes accrued | 43,909 | 8,786 | ||||||||||||
| Interest accrued | 11,107 | 8,671 | ||||||||||||
| Deferred fuel costs | — | 980 | ||||||||||||
| Other | 14,096 | 14,427 | ||||||||||||
| TOTAL | 258,819 | 230,067 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 170,511 | 201,541 | ||||||||||||
| Accumulated deferred investment tax credits | 15,591 | 15,617 | ||||||||||||
| Regulatory liability for income taxes - net | 14,934 | 15,000 | ||||||||||||
| Other regulatory liabilities | 248,372 | 260,312 | ||||||||||||
| Accumulated provisions | 79,954 | 90,293 | ||||||||||||
| Long-term debt | 650,351 | 650,463 | ||||||||||||
| Long-term payable due to associated company | 5,864 | 5,864 | ||||||||||||
| Other | 55,542 | 56,395 | ||||||||||||
| TOTAL | 1,241,119 | 1,295,485 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | 709,700 | 697,601 | ||||||||||||
| TOTAL | 709,700 | 697,601 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $2,209,638 | $2,223,153 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY | ||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||
| (Unaudited) | ||||||||
| Member's Equity | ||||||||
| (In Thousands) | ||||||||
| Balance at December 31, 2023 | $806,754 | |||||||
| Net loss | (48,980) | |||||||
| Balance at March 31, 2024 | $757,774 | |||||||
| Balance at December 31, 2024 | $697,601 | |||||||
| Net income | 12,099 | |||||||
| Balance at March 31, 2025 | $709,700 | |||||||
| See Notes to Financial Statements. |
ENTERGY TEXAS, INC. AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Results of Operations
Net Income
Net income increased $30.1 million primarily due to higher volume/weather, higher retail electric price, and higher other income, partially offset by higher interest expense and higher taxes other than income taxes.
Operating Revenues
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 | $444.5 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | (35.8) | ||||
| Retail electric price | 11.2 | ||||
| Volume/weather | 22.0 | ||||
| 2025 operating revenues | $441.9 |
Entergy Texas’s 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 retail electric price variance is primarily due to 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. See Note 2 to the financial statements in the Form 10-K for discussion of the distribution cost recovery factor rider filings.
The volume/weather variance is primarily due to the effect of more favorable weather on residential sales, an increase in weather-adjusted residential usage, and an increase in commercial usage. The increase in weather-adjusted residential usage and the increase in commercial usage are primarily due to an increase in customers.
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
Total electric energy sales for Entergy Texas for the three months ended March 31, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 1,559 | 1,311 | 19 | ||||||||||||||
| Commercial | 1,110 | 1,083 | 2 | ||||||||||||||
| Industrial | 2,160 | 2,053 | 5 | ||||||||||||||
| Governmental | 63 | 63 | — | ||||||||||||||
| Total retail | 4,892 | 4,510 | 8 | ||||||||||||||
| Sales for resale: | |||||||||||||||||
| Non-associated companies | 52 | 117 | (56) | ||||||||||||||
| Total | 4,944 | 4,627 | 7 |
See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.
Other Income Statement Variances
Other operation and maintenance expenses decreased primarily due to contract costs of $2.0 million, in first quarter 2024, related to operational performance, customer service, and organizational health initiatives and a decrease of $1.9 million in non-nuclear generation expenses primarily due to a lower scope of work performed in 2025 as compared to 2024.
Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.
Depreciation and amortization expenses decreased primarily due to the recognition of $13.8 million in depreciation expense in first quarter 2024 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 2022 base rate case. The decrease was partially offset by additions to plant in service.
Other income increased primarily due to an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Orange County Advanced Power Station project and the Legend Power Station project.
Interest expense increased primarily due to:
-
the issuance of $350 million of 5.55% Series mortgage bonds in August 2024;
-
carrying costs of $3.4 million, recorded in first quarter 2025, related to the interim fuel refund. The recognition of carrying costs is effective over the same period as the interim fuel refund and results in no effect on net income. See Note 2 to the financial statements in the Form 10-K for discussion of the interim fuel refund; and
-
the issuance of $500 million of 5.25% Series mortgage bonds in February 2025.
The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including the Orange County Advanced Power Station project and the Legend Power Station project.
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
Income Taxes
The effective income tax rate was 15.6% 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 book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.
The effective income tax rate was 19.1% 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 book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.
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.
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $184,997 | $21,986 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 61,794 | 110,907 | |||||||||
| Investing activities | (440,985) | 34,303 | |||||||||
| Financing activities | 492,329 | 10,740 | |||||||||
| Net increase in cash and cash equivalents | 113,138 | 155,950 | |||||||||
| Cash and cash equivalents at end of period | $298,135 | $177,936 |
Operating Activities
Net cash flow provided by operating activities decreased $49.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the timing of recovery of fuel and purchased power costs, an increase of $38.7 million in interest paid, higher fuel and purchased power payments, and lower collections from customers. The decrease was partially offset by the timing of payments to vendors. See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery.
Investing Activities
Entergy Texas’s investing activities used $441.0 million of cash for the three months ended March 31, 2025 compared to providing $34.3 million of cash for the three months ended March 31, 2024 primarily due to the following activity:
-
money pool activity;
-
an increase of $131.5 million in non-nuclear generation construction expenditures primarily due to higher spending on the Legend Power Station project and the Orange County Advanced Power Station project;
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
-
an increase of $52 million in transmission construction expenditures primarily due to increased spending on various transmission projects in 2025 and higher capital expenditures as a result of increased development in Entergy Texas’s service area; and
-
a decrease of $17.9 million in information technology capital expenditures primarily due to decreased spending on various technology projects in 2025.
Increases in Entergy Texas’s receivable from the money pool are a use of cash flow, and Entergy Texas’s receivable from the money pool increased $36.2 million for the three months ended March 31, 2025 compared to decreasing by $267.6 million for the three months ended March 31, 2024. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
Financing Activities
Net cash flow provided by financing activities increased $481.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the issuance of $500 million of 5.25% Series mortgage bonds in February 2025, partially offset by a decrease of $12.4 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 Note 5 to the financial statements in the Form 10-K for more details on long-term debt.
Capital Structure
Entergy Texas’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Texas is primarily due to the net issuance of long-term debt in 2025.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 54.4 | % | 51.6 | % | |||||||
| Effect of excluding securitization bonds | (1.6 | %) | (1.7 | %) | |||||||
| Debt to capital, excluding securitization bonds (non-GAAP) (a) | 52.8 | % | 49.9 | % | |||||||
| Effect of subtracting cash | (2.0 | %) | (1.5 | %) | |||||||
| Net debt to net capital, excluding securitization bonds (non-GAAP) (a) | 50.8 | % | 48.4 | % |
(a)Calculation excludes the securitization bonds, which are non-recourse to Entergy Texas.
Net debt consists of debt less cash and cash equivalents. Debt consists of finance lease obligations and long-term debt, including the currently maturing portion. Capital consists of debt and equity. 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 Texas 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 Texas’s financial condition because the securitization bonds are non-recourse to Entergy Texas, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy Texas 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 Texas’s financial condition because net debt indicates Entergy Texas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Texas’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy Texas’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy Texas’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect Entergy Texas’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 Texas’s ability to access needed capital. The nature and extent of any such 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.
Entergy Texas’s receivables from the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $54,681 | $18,504 | $50,244 | $317,882 |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
Entergy Texas has a credit facility in the amount of $300 million scheduled to expire in June 2029. The credit facility includes fronting commitments for the issuance of letters of credit against $25 million of the borrowing capacity of the facility. As of March 31, 2025, there were no cash borrowings and $1.1 million in letters of credit outstanding under the credit facility. In addition, Entergy Texas is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of March 31, 2025, $105.4 million in letters of credit were outstanding under Entergy Texas’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.
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
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
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.
State and Local Rate Regulation and Fuel-Cost Recovery
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.
Retail Rates
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.
Federal Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis
Industrial and Commercial Customers
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers” in the Form 10-K for a discussion of industrial and commercial customers.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 Texas’s accounting for utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| ENTERGY TEXAS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $441,939 | $444,491 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 24,392 | 96,137 | ||||||||||||||||||||||||
| Purchased power | 132,618 | 94,343 | ||||||||||||||||||||||||
| Other operation and maintenance | 74,455 | 77,960 | ||||||||||||||||||||||||
| Taxes other than income taxes | 30,627 | 24,567 | ||||||||||||||||||||||||
| Depreciation and amortization | 80,680 | 89,505 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | 3,257 | (975) | ||||||||||||||||||||||||
| TOTAL | 346,029 | 381,537 | ||||||||||||||||||||||||
| OPERATING INCOME | 95,910 | 62,954 | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 17,372 | 9,248 | ||||||||||||||||||||||||
| Interest and investment income | 2,759 | 3,904 | ||||||||||||||||||||||||
| Miscellaneous - net | (1,154) | (2,312) | ||||||||||||||||||||||||
| TOTAL | 18,977 | 10,840 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 43,072 | 31,966 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (7,385) | (3,602) | ||||||||||||||||||||||||
| TOTAL | 35,687 | 28,364 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 79,200 | 45,430 | ||||||||||||||||||||||||
| Income taxes | 12,344 | 8,686 | ||||||||||||||||||||||||
| NET INCOME | 66,856 | 36,744 | ||||||||||||||||||||||||
| Preferred dividend requirements | 518 | 518 | ||||||||||||||||||||||||
| EARNINGS APPLICABLE TO COMMON STOCK | $66,338 | $36,226 | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
| ENTERGY TEXAS, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $66,856 | $36,744 | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 80,680 | 89,505 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 7,183 | 1,438 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | 23,273 | 13,059 | ||||||||||||
| Fuel inventory | 5,551 | 1,009 | ||||||||||||
| Accounts payable | 12,130 | (17,830) | ||||||||||||
| Taxes accrued | (39,088) | (28,917) | ||||||||||||
| Interest accrued | (22,416) | 5,287 | ||||||||||||
| Deferred fuel costs | (57,024) | 38,863 | ||||||||||||
| Other working capital accounts | 19 | (11,186) | ||||||||||||
| Provisions for estimated losses | (560) | (1,358) | ||||||||||||
| Other regulatory assets | 27,907 | 24,181 | ||||||||||||
| Other regulatory liabilities | (6,314) | (7,959) | ||||||||||||
| Pension and other postretirement funded status | (4,037) | (4,648) | ||||||||||||
| Other assets and liabilities | (32,366) | (27,281) | ||||||||||||
| Net cash flow provided by operating activities | 61,794 | 110,907 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (416,045) | (235,625) | ||||||||||||
| Allowance for equity funds used during construction | 17,372 | 9,248 | ||||||||||||
| Changes in money pool receivable - net | (36,177) | 267,638 | ||||||||||||
| Changes in securitization account | (6,135) | (5,958) | ||||||||||||
| Increase in other investments | — | (1,000) | ||||||||||||
| Net cash flow provided by (used in) investing activities | (440,985) | 34,303 | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 494,300 | — | ||||||||||||
| Preferred stock dividends paid | (518) | (518) | ||||||||||||
| Other | (1,453) | 11,258 | ||||||||||||
| Net cash flow provided by financing activities | 492,329 | 10,740 | ||||||||||||
| Net increase in cash and cash equivalents | 113,138 | 155,950 | ||||||||||||
| Cash and cash equivalents at beginning of period | 184,997 | 21,986 | ||||||||||||
| Cash and cash equivalents at end of period | $298,135 | $177,936 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $64,646 | $25,940 | ||||||||||||
| Income taxes | $— | $2,447 | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $198,271 | $276,548 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY TEXAS, INC. 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 | $120 | $291 | ||||||||||||
| Temporary cash investments | 298,015 | 184,706 | ||||||||||||
| Total cash and cash equivalents | 298,135 | 184,997 | ||||||||||||
| Securitization recovery trust account | 8,838 | 2,703 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | 80,787 | 84,842 | ||||||||||||
| Allowance for doubtful accounts | (1,126) | (1,304) | ||||||||||||
| Associated companies | 61,111 | 26,564 | ||||||||||||
| Other | 30,535 | 43,773 | ||||||||||||
| Accrued unbilled revenues | 69,532 | 74,060 | ||||||||||||
| Total accounts receivable | 240,839 | 227,935 | ||||||||||||
| Fuel inventory - at average cost | 40,419 | 45,970 | ||||||||||||
| Materials and supplies | 155,043 | 157,241 | ||||||||||||
| Prepayments and other | 33,146 | 34,803 | ||||||||||||
| TOTAL | 776,420 | 653,649 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Investments in affiliates - at equity | 96 | 107 | ||||||||||||
| Other | 15,968 | 15,878 | ||||||||||||
| TOTAL | 16,064 | 15,985 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 8,692,564 | 8,628,625 | ||||||||||||
| Construction work in progress | 1,841,353 | 1,513,170 | ||||||||||||
| TOTAL UTILITY PLANT | 10,533,917 | 10,141,795 | ||||||||||||
| Less - accumulated depreciation and amortization | 2,609,736 | 2,548,961 | ||||||||||||
| UTILITY PLANT - NET | 7,924,181 | 7,592,834 | ||||||||||||
| 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) | 521,801 | 549,708 | ||||||||||||
| Other | 176,574 | 157,904 | ||||||||||||
| TOTAL | 698,375 | 707,612 | ||||||||||||
| TOTAL ASSETS | $9,415,040 | $8,970,080 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY TEXAS, INC. AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| March 31, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | $58,411 | $65,335 | ||||||||||||
| Other | 380,109 | 361,404 | ||||||||||||
| Customer deposits | 40,232 | 40,782 | ||||||||||||
| Taxes accrued | 37,385 | 76,474 | ||||||||||||
| Interest accrued | 16,287 | 38,703 | ||||||||||||
| Deferred fuel costs | 2,247 | 59,271 | ||||||||||||
| Other | 17,577 | 20,836 | ||||||||||||
| TOTAL | 552,248 | 662,805 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 885,116 | 868,849 | ||||||||||||
| Accumulated deferred investment tax credits | 7,028 | 7,215 | ||||||||||||
| Regulatory liability for income taxes - net | 87,909 | 93,766 | ||||||||||||
| Other regulatory liabilities | 18,248 | 18,705 | ||||||||||||
| Asset retirement cost liabilities | 14,498 | 17,688 | ||||||||||||
| Accumulated provisions | 9,425 | 9,985 | ||||||||||||
| Long-term debt (includes securitization bonds of $239,713 as of March 31, 2025 and $239,622 as of December 31, 2024) | 4,047,376 | 3,552,443 | ||||||||||||
| Other | 385,642 | 397,412 | ||||||||||||
| TOTAL | 5,455,242 | 4,966,063 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Common stock, no par value, authorized 200,000,000 shares; issued and outstanding 46,525,000 shares in 2025 and 2024 | 49,452 | 49,452 | ||||||||||||
| Paid-in capital | 1,200,125 | 1,200,125 | ||||||||||||
| Retained earnings | 2,119,223 | 2,052,885 | ||||||||||||
| Total common shareholder's equity | 3,368,800 | 3,302,462 | ||||||||||||
| Preferred stock without sinking fund | 38,750 | 38,750 | ||||||||||||
| TOTAL | 3,407,550 | 3,341,212 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $9,415,040 | $8,970,080 | ||||||||||||
| See Notes to Financial Statements. |
| ENTERGY TEXAS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Common Equity | |||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings | Total | |||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $38,750 | $49,452 | $1,200,125 | $1,830,335 | $3,118,662 | ||||||||||||||||||||||||
| Net income | — | — | — | 36,744 | 36,744 | ||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | (518) | (518) | ||||||||||||||||||||||||
| Balance at March 31, 2024 | $38,750 | $49,452 | $1,200,125 | $1,866,561 | $3,154,888 | ||||||||||||||||||||||||
| Balance at December 31, 2024 | $38,750 | $49,452 | $1,200,125 | $2,052,885 | $3,341,212 | ||||||||||||||||||||||||
| Net income | — | — | — | 66,856 | 66,856 | ||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | (518) | (518) | ||||||||||||||||||||||||
| Balance at March 31, 2025 | $38,750 | $49,452 | $1,200,125 | $2,119,223 | $3,407,550 | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
SYSTEM ENERGY RESOURCES, INC.
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
System Energy’s principal asset consists of an ownership interest and a leasehold interest in Grand Gulf. The capacity and energy from its 90% interest is sold under the Unit Power Sales Agreement to its only four customers, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy’s operating revenues are derived from the allocation of the capacity, energy, and related costs associated with its 90% interest in Grand Gulf pursuant to the Unit Power Sales Agreement. Payments under the Unit Power Sales Agreement are System Energy’s only source of operating revenues. As discussed in “Complaints Against System Energy**”** in Note 2 to the financial statements in the Form 10-K, System Energy and the Unit Power Sales Agreement have been the subject of several litigation proceedings at the FERC. Settlements that resolve all significant aspects of these complaints have been reached with the MPSC, the APSC, the City Council, and the LPSC, and these settlements have been approved by the FERC.
Results of Operations
Net Income
Net income decreased $7.7 million primarily due a lower rate of return on rate base, including the effects of lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy New Orleans effective with the June 2024 service month per the settlement agreement with the City Council and the lower authorized rate of return on equity and capital structure limitations reflected in monthly bills issued to Entergy Louisiana effective with the September 2024 service month per the settlement with the LPSC. The decrease was partially offset by higher operating revenues resulting from an increase in rate base. See Note 2 to the financial statements in the Form 10-K for discussion of the settlements with the City Council and the LPSC.
Income Taxes
The effective income tax rate was 21.2% 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 book and tax differences related to utility plant items.
The effective income tax rate was 20.5% 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 book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes.
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.
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis
Liquidity and Capital Resources
Cash Flow
Cash flows for the three months ended March 31, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Cash and cash equivalents at beginning of period | $28,908 | $60 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 45,164 | 70,339 | |||||||||
| Investing activities | (22,540) | (188,259) | |||||||||
| Financing activities | (48,963) | 229,361 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (26,339) | 111,441 | |||||||||
| Cash and cash equivalents at end of period | $2,569 | $111,501 |
Operating Activities
Net cash flow provided by operating activities decreased $25.2 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to the timing of collections from customers, partially offset by a decrease of $6.6 million in spending on nuclear refueling outage costs in 2025 as compared to 2024.
Investing Activities
Net cash flow used in investing activities decreased $165.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to a decrease in cash used of $123.5 million as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle and money pool activity.
Decreases in System Energy’s receivable from the money pool are a source of cash flow and System Energy’s receivable from the money pool decreased $2.4 million for the three months ended March 31, 2025 compared to increasing by $31.5 million for the three months ended March 31, 2024. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.
Financing Activities
System Energy’s financing activities used $49 million of cash for the three months ended March 31, 2025 compared to providing $229.4 million of cash for the three months ended March 31, 2024 primarily due to:
-
a capital contribution of $150 million received from Entergy Corporation in January 2024 in order to maintain System Energy’s capital structure;
-
net repayments of $13.8 million in 2025 compared to net long-term borrowings of $91.7 million in 2024 on the nuclear fuel company variable interest entity’s credit facility; and
-
$35 million in common stock dividends and distributions paid in 2025. No common stock dividends or distributions were paid in 2024 in anticipation of the settlements with the APSC, the LPSC, and the City Council.
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis
Capital Structure
System Energy’s debt to capital ratio is shown in the following table.
| March 31, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 52.9 | % | 52.9 | % | |||||||
| Effect of subtracting cash | (0.1 | %) | (0.7 | %) | |||||||
| Net debt to net capital (non-GAAP) | 52.8 | % | 52.2 | % |
Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings and long-term debt, including the currently maturing portion. Capital consists of debt and common equity. Net capital consists of capital less cash and cash equivalents. System Energy uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating System Energy’s financial condition. The net debt to net capital ratio is a non-GAAP measure. System Energy uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating System Energy’s financial condition because net debt indicates System Energy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Uses and Sources of Capital
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of System Energy’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact System Energy’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with System Energy’s capital investments or operations and maintenance expenses; operational impacts, such as supply chain, manufacturing or raw materials sourcing disruptions which may affect System Energy’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 System Energy’s ability to access needed capital. The nature and extent of any such 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.
System Energy’s receivables from or (payables to) the money pool were as follows:
| March 31, 2025 | December 31, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| $443 | $2,851 | $31,456 | ($12,246) |
See Note 4 to the financial statements in the Form 10-K for a description of the money pool.
The System Energy nuclear fuel company variable interest entity has a credit facility in the amount of $120 million scheduled to expire in June 2027. As of March 31, 2025, $58.9 million in loans were outstanding under the System Energy nuclear fuel company variable interest entity credit facility. See Note 4 to the financial statements herein for additional discussion of the variable interest entity credit facility.
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis
Federal Regulation
See the “Rate, Cost-recovery, and Other Regulation - Federal Regulation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation.
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.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Environmental Risks” in the Form 10-K for a discussion of environmental risks.
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 System Energy’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 the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
| SYSTEM ENERGY RESOURCES, INC. | ||||||||||||||||||||||||||
| INCOME STATEMENTS | ||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| OPERATING REVENUES | ||||||||||||||||||||||||||
| Electric | $141,811 | $152,620 | ||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 14,816 | 13,117 | ||||||||||||||||||||||||
| Nuclear refueling outage expenses | 4,090 | 6,661 | ||||||||||||||||||||||||
| Other operation and maintenance | 43,479 | 51,423 | ||||||||||||||||||||||||
| Decommissioning | 11,144 | 10,707 | ||||||||||||||||||||||||
| Taxes other than income taxes | 6,804 | 7,209 | ||||||||||||||||||||||||
| Depreciation and amortization | 30,764 | 29,678 | ||||||||||||||||||||||||
| Other regulatory charges (credits) - net | 93 | (4,973) | ||||||||||||||||||||||||
| TOTAL | 111,190 | 113,822 | ||||||||||||||||||||||||
| OPERATING INCOME | 30,621 | 38,798 | ||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | 1,603 | 2,434 | ||||||||||||||||||||||||
| Interest and investment income | 12,439 | 7,973 | ||||||||||||||||||||||||
| Miscellaneous - net | 237 | 237 | ||||||||||||||||||||||||
| TOTAL | 14,279 | 10,644 | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | 16,022 | 11,171 | ||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | (787) | (859) | ||||||||||||||||||||||||
| TOTAL | 15,235 | 10,312 | ||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 29,665 | 39,130 | ||||||||||||||||||||||||
| Income taxes | 6,276 | 8,012 | ||||||||||||||||||||||||
| NET INCOME | $23,389 | $31,118 | ||||||||||||||||||||||||
| See Notes to Financial Statements. |
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| SYSTEM ENERGY RESOURCES, INC. | ||||||||||||||
| STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net income | $23,389 | $31,118 | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 54,649 | 51,714 | ||||||||||||
| Deferred income taxes, investment tax credits, and non-current taxes accrued | 2,480 | 11,452 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | (5,944) | 8,832 | ||||||||||||
| Accounts payable | (23,848) | 116,460 | ||||||||||||
| Taxes accrued | (11,689) | (14,091) | ||||||||||||
| Interest accrued | 5,517 | 883 | ||||||||||||
| Other working capital accounts | 963 | (25,431) | ||||||||||||
| Other regulatory assets | 2,695 | (5,358) | ||||||||||||
| Other regulatory liabilities | (45,323) | (23,057) | ||||||||||||
| Pension and other postretirement funded status | (3,799) | (3,806) | ||||||||||||
| Other assets and liabilities | 46,074 | (78,377) | ||||||||||||
| Net cash flow provided by operating activities | 45,164 | 70,339 | ||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | (26,431) | (39,563) | ||||||||||||
| Allowance for equity funds used during construction | 1,603 | 2,434 | ||||||||||||
| Nuclear fuel purchases | (20,123) | (111,959) | ||||||||||||
| Proceeds from sale of nuclear fuel | 31,686 | — | ||||||||||||
| Decrease in other investments | — | 23 | ||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | 182,871 | 136,035 | ||||||||||||
| Investment in nuclear decommissioning trust funds | (194,554) | (143,773) | ||||||||||||
| Changes in money pool receivable - net | 2,408 | (31,456) | ||||||||||||
| Net cash flow used in investing activities | (22,540) | (188,259) | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | 174,877 | 233,933 | ||||||||||||
| Retirement of long-term debt | (188,840) | (142,326) | ||||||||||||
| Capital contribution from parent | — | 150,000 | ||||||||||||
| Change in money pool payable - net | — | (12,246) | ||||||||||||
| Common stock dividends and distributions paid | (35,000) | — | ||||||||||||
| Net cash flow provided by (used in) financing activities | (48,963) | 229,361 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | (26,339) | 111,441 | ||||||||||||
| Cash and cash equivalents at beginning of period | 28,908 | 60 | ||||||||||||
| Cash and cash equivalents at end of period | $2,569 | $111,501 | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $10,378 | $10,357 | ||||||||||||
| Income taxes | $— | ($2,326) | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $5,424 | $48,856 | ||||||||||||
| See Notes to Financial Statements. |
| SYSTEM ENERGY RESOURCES, INC. | ||||||||||||||
| BALANCE SHEETS | ||||||||||||||
| ASSETS | ||||||||||||||
| March 31, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT ASSETS | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Cash | $155 | $448 | ||||||||||||
| Temporary cash investments | 2,414 | 28,460 | ||||||||||||
| Total cash and cash equivalents | 2,569 | 28,908 | ||||||||||||
| Accounts receivable: | ||||||||||||||
| Associated companies | 53,122 | 48,134 | ||||||||||||
| Other | 3,973 | 5,425 | ||||||||||||
| Total accounts receivable | 57,095 | 53,559 | ||||||||||||
| Materials and supplies | 163,069 | 163,814 | ||||||||||||
| Deferred nuclear refueling outage costs | 15,927 | 19,884 | ||||||||||||
| Prepayments and other | 9,515 | 5,768 | ||||||||||||
| TOTAL | 248,175 | 271,933 | ||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Decommissioning trust funds | 1,497,337 | 1,529,059 | ||||||||||||
| TOTAL | 1,497,337 | 1,529,059 | ||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | 5,667,176 | 5,668,253 | ||||||||||||
| Construction work in progress | 110,883 | 85,127 | ||||||||||||
| Nuclear fuel | 178,151 | 220,044 | ||||||||||||
| TOTAL UTILITY PLANT | 5,956,210 | 5,973,424 | ||||||||||||
| Less - accumulated depreciation and amortization | 3,608,136 | 3,578,709 | ||||||||||||
| UTILITY PLANT - NET | 2,348,074 | 2,394,715 | ||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | 423,799 | 426,494 | ||||||||||||
| Other | 22,033 | 20,273 | ||||||||||||
| TOTAL | 445,832 | 446,767 | ||||||||||||
| TOTAL ASSETS | $4,539,418 | $4,642,474 | ||||||||||||
| See Notes to Financial Statements. |
| SYSTEM ENERGY RESOURCES, INC. | ||||||||||||||
| BALANCE SHEETS | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| March 31, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Currently maturing long-term debt | $200,112 | $200,090 | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | 5,248 | 18,477 | ||||||||||||
| Other | 17,408 | 45,017 | ||||||||||||
| Taxes accrued | 4,163 | 15,852 | ||||||||||||
| Interest accrued | 18,859 | 13,342 | ||||||||||||
| Other | 4,475 | 4,473 | ||||||||||||
| TOTAL | 250,265 | 297,251 | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | 456,917 | 451,830 | ||||||||||||
| Accumulated deferred investment tax credits | 42,614 | 42,984 | ||||||||||||
| Regulatory liability for income taxes - net | 104,065 | 105,467 | ||||||||||||
| Other regulatory liabilities | 703,269 | 747,190 | ||||||||||||
| Decommissioning | 1,138,857 | 1,127,712 | ||||||||||||
| Pension and other postretirement liabilities | 6,316 | 8,353 | ||||||||||||
| Long-term debt | 876,685 | 889,646 | ||||||||||||
| Other | 2 | 2 | ||||||||||||
| TOTAL | 3,328,725 | 3,373,184 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||
| COMMON EQUITY | ||||||||||||||
| Common stock, no par value, authorized 1,000,000 shares; issued and outstanding 789,350 shares in 2025 and 2024 | 938,944 | 958,944 | ||||||||||||
| Retained earnings | 21,484 | 13,095 | ||||||||||||
| TOTAL | 960,428 | 972,039 | ||||||||||||
| TOTAL LIABILITIES AND EQUITY | $4,539,418 | $4,642,474 | ||||||||||||
| See Notes to Financial Statements. |
| SYSTEM ENERGY RESOURCES, INC. | |||||||||||||||||
| STATEMENTS OF CHANGES IN COMMON EQUITY | |||||||||||||||||
| For the Three Months Ended March 31, 2025 and 2024 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Common Stock | Retained Earnings (Accumulated Deficit) | Total | |||||||||||||||
| (In Thousands) | |||||||||||||||||
| Balance at December 31, 2023 | $916,850 | ($28,311) | $888,539 | ||||||||||||||
| Net income | — | 31,118 | 31,118 | ||||||||||||||
| Capital contribution from parent | 150,000 | — | 150,000 | ||||||||||||||
| Balance at March 31, 2024 | $1,066,850 | $2,807 | $1,069,657 | ||||||||||||||
| Balance at December 31, 2024 | $958,944 | $13,095 | $972,039 | ||||||||||||||
| Net income | — | 23,389 | 23,389 | ||||||||||||||
| Common stock dividends and distributions | (20,000) | (15,000) | (35,000) | ||||||||||||||
| Balance at March 31, 2025 | $938,944 | $21,484 | $960,428 | ||||||||||||||
| See Notes to Financial Statements. |
ENTERGY CORPORATION AND SUBSIDIARIES
PART II. OTHER INFORMATION
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