Item 4. Controls and Procedures

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Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 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 September 30, 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

Third Quarter 2025 Compared to Third Quarter 2024

Net income increased $6 million primarily due to higher volume/weather and higher retail electric price, partially offset by an $18.3 million reduction in income tax expense in third quarter 2024 as a result of the resolution of an Arkansas state income tax audit, higher taxes other than income taxes, higher depreciation and amortization expenses, and higher other operation and maintenance expenses. See Note 3 to the financial statements in the Form 10-K for discussion of the resolution of the Arkansas state income tax audit.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $128.6 million 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, higher volume/weather, and higher retail electric price, partially offset by higher depreciation and amortization expenses, an $18.3 million reduction in income tax expense in third quarter 2024 as a result of the resolution of an Arkansas state income tax audit, higher interest expense, higher taxes other than income taxes, and higher other operation and maintenance expenses. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the opportunity sales proceeding. See Note 3 to the financial statements in the Form 10-K for discussion of the resolution of the Arkansas state income tax audit.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

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


			Amount
			(In Millions)
2024 operating revenues			$662.1
Fuel, rider, and other revenues that do not significantly affect net income			40.6
Retail one-time bill credit			92.3
Volume/weather			48.7
Retail electric price			20.4
2025 operating revenues			$864.1

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.

Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

the Grand Gulf credit rider as a result of the System Energy settlement with the APSC. There is no effect on net income because Entergy Arkansas previously recorded a regulatory liability for the effects of the System Energy settlement with the APSC. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC and see Note 2 to the financial statements herein and in the Form 10-K for discussion of the Grand Gulf credit rider.

The volume/weather variance is primarily due to an increase in industrial usage and an increase in weather-adjusted residential usage, partially offset by the effect of less 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. The increase in weather-adjusted residential usage is primarily due to an increase in customers.

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.

Total electric energy sales for Entergy Arkansas for the three months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	2,357	2,243	5
Commercial	1,724	1,650	4
Industrial	3,380	2,682	26
Governmental	59	54	9
Total retail	7,520	6,629	13
Sales for resale:
Associated companies	592	577	3
Non-associated companies	1,336	1,343	(1)
Total	9,448	8,549	11

See Note 12 to the financial statements herein for additional discussion of Entergy Arkansas’s operating revenues.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:


			Amount
			(In Millions)
2024 operating revenues			$1,893.0
Fuel, rider, and other revenues that do not significantly affect net income			41.8
Volume/weather			98.1
Retail one-time bill credit			92.3
Retail electric price			50.1
2025 operating revenues			$2,175.3

Entergy Arkansas, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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 an increase in industrial and residential usage. 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. The increase in residential usage is primarily due to an increase in customers.

The retail one-time bill credit variance represents the disbursement of settlement proceeds in the form of a one-time bill credit provided to Entergy Arkansas’s retail customers during the August 2024 billing cycle through the Grand Gulf credit rider as a result of the System Energy settlement with the APSC. There is no effect on net income because Entergy Arkansas previously recorded a regulatory liability for the effects of the System Energy settlement with the APSC. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC and see Note 2 to the financial statements herein and in the Form 10-K for discussion of the Grand Gulf credit rider.

Total electric energy sales for Entergy Arkansas for the nine months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	6,242	6,018	4
Commercial	4,377	4,330	1
Industrial	8,986	7,466	20
Governmental	147	141	4
Total retail	19,752	17,955	10
Sales for resale:
Associated companies	1,688	1,562	8
Non-associated companies	3,792	3,292	15
Total	25,232	22,809	11

See Note 12 to the financial statements herein for additional discussion of Entergy Arkansas’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Other operation and maintenance expenses increased primarily due to an increase of $9.6 million in power delivery expenses primarily due to higher vegetation maintenance costs and an increase of $4.3 million in compensation and benefits costs primarily due to higher incentive-based accruals in 2025 as compared to 2024. The increase was partially offset by several individually insignificant items.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

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.

Other regulatory charges (credits) - net includes the reversal in third quarter 2024 of a $92.3 million regulatory liability recognized for the obligation to return to customers the refund from the System Energy settlement with the APSC. The reversal of the regulatory liability offsets a reduction in gross revenues from the retail one-time bill credits provided to customers in the August 2024 billing cycle through the Grand Gulf credit rider. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC and see Note 2 to the financial statements herein and in the Form 10-K for discussion of the Grand Gulf credit rider. Additionally, 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 increased primarily due to changes in decommissioning trust fund activity, partially offset by a decrease of $6.8 million in interest earned on money pool investments.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

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 increased primarily due to:

an increase of $15.3 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;
an increase of $4.8 million in power delivery expenses primarily due to higher vegetation maintenance costs;
an increase of $3.4 million in bad debt expense; and
several individually insignificant items.

The increase was partially offset by:

contract costs of $9.4 million in 2024 related to operational performance, customer service, and organizational health initiatives;
a decrease of $8.3 million in energy efficiency expenses primarily due to the timing of recovery from customers; and
a decrease of $6.6 million in nuclear generation expenses primarily due to a lower scope of work performed in 2025 as compared to 2024.

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.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Entergy Arkansas, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Other income decreased primarily due to changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in 2024, and a decrease of $9.7 million in interest earned on money pool investments.

Interest expense increased primarily due to the issuance of $400 million of 5.45% Series mortgage bonds in May 2024 and an additional $300 million in a reopening of the same series in May 2025.

Income Taxes

The effective income tax rates were 22% for the third quarter 2025 and 21.4% for the nine months ended September 30, 2025. The differences in the effective income tax rates for the third quarter 2025 and the nine months ended September 30, 2025 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes as a result of tax rate changes and certain book and tax differences related to utility plant items.

The effective income tax rate was 16.2% for the third quarter 2024. The difference in the effective income tax rate for the third quarter 2024 versus the federal statutory rate of 21% was primarily due to the resolution of an Arkansas state income tax audit, partially offset by the accrual for state income taxes and the amortization of accumulated deferred income taxes as a result of tax rate changes. See Note 3 to the financial statements in the Form 10-K for discussion of the resolution of the Arkansas state income tax audit.

The effective income tax rate was 18.7% for the nine months ended September 30, 2024. The difference in the effective income tax rate for the nine months ended September 30, 2024 versus the federal statutory rate of 21% was primarily due to the resolution of an Arkansas state income tax audit, certain book and tax differences related to utility plant items, and book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes and the amortization of accumulated deferred income taxes as a result of tax rate changes. See Note 3 to the financial statements in the Form 10-K for discussion of the resolution of the Arkansas state income tax audit.

Income Tax Legislation and Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” herein and in the Form 10-K for discussion of income tax legislation and regulation. See Note 10 to the financial statements herein for discussion of the nuclear and solar production tax credits recorded in 2025.

Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	1,081,700	836,755
Investing activities	(896,720)	(1,252,242)
Financing activities	286,679	1,052,038
Net increase in cash and cash equivalents	471,659	636,551

Cash and cash equivalents at end of period	$476,406	$640,183

Operating Activities

Net cash flow provided by operating activities increased $244.9 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the receipt of $160.2 million in payments related to the sale of nuclear and solar production tax credits in third quarter 2025. See Note 3 to the financial statements in the Form 10-K and see Note 10 to the financial statements herein for discussion of the nuclear and solar production tax credits;
higher collections from customers; and
a decrease of $22.4 million in spending on nuclear refueling outages in 2025 as compared to 2024.

The increase was partially offset by:

higher fuel and purchased power payments. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery; and
the receipt of $92.7 million in settlement proceeds in 2024 as a result of the System Energy settlement with the APSC, which was subsequently refunded to retail customers in third quarter 2024 with one-time bill credits through the Grand Gulf credit rider. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement agreement with the APSC and the Grand Gulf credit rider.

Investing Activities

Net cash flow used in investing activities decreased $355.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the initial payment of approximately $307.7 million in August 2024 for the purchase of the Driver Solar facility;
the initial and substantial completion payments totaling approximately $185.5 million in 2024 for the purchase of the Walnut Bend Solar facility;
the initial payment of approximately $48.4 million in August 2024 for the purchase of the West Memphis Solar facility;
a decrease in cash used of $47.6 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 Arkansas, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

a decrease of $32.8 million in transmission construction expenditures primarily due to decreased spending on various transmission projects in 2025; and
a decrease of $20.9 million in information technology capital expenditures primarily due to decreased spending on technology upgrade projects in 2025.

The decrease was partially offset by:

an increase of $137.3 million in non-nuclear generation construction expenditures primarily due to higher spending on the Ironwood Power Station (formerly Lake Catherine Unit 5) project;
an increase of $70 million in distribution construction expenditures primarily due to higher capital expenditures for storm restoration in 2025; and
money pool activity.

Increases in Entergy Arkansas’s receivable from the money pool are a use of cash flow, and Entergy Arkansas’s receivable from the money pool increased $120.3 million for the nine months ended September 30, 2025 compared to increasing by $65.8 million for the nine months ended September 30, 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 14 to the financial statements in the Form 10-K for discussion of the Driver Solar facility, the Walnut Bend Solar facility, and the West Memphis Solar facility purchases.

Financing Activities

Net cash flow provided by financing activities decreased $765.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the issuances of $400 million of 5.45% Series mortgage bonds and $400 million of 5.75% Series mortgage bonds, each in May 2024;
capital contributions of approximately $695 million received from Entergy Corporation in 2024 to partially finance the acquisitions of the Walnut Bend Solar facility, the West Memphis Solar facility, and the Driver 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; and
a decrease of $48.4 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements.

The decrease was partially offset by:

the repayment, at maturity, of $375 million of 3.70% Series mortgage bonds in June 2024;
the issuance of $300 million of 5.45% Series mortgage bonds in May 2025;
money pool activity; and
net long-term borrowings of $1.6 million in 2025 compared to net repayments of $31.7 million in 2024 on the nuclear fuel company variable interest entity’s credit facility.

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 nine months ended September 30, 2025 compared to decreasing by $145.4 million for the nine months ended September 30, 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 Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Capital Structure

Entergy Arkansas’s debt to capital ratio is shown in the following table.


	September 30, 2025		December 31, 2024
Debt to capital	53.1	%	53.6	%
Effect of subtracting cash	(2.3	%)	—	%
Net debt to net capital (non-GAAP)	50.8	%	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 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.

Entergy Arkansas is developing its capital investment plan for 2026 through 2029 and currently anticipates making $7.6 billion in capital investments during that period, including $2 billion in 2026, $2.2 billion in 2027, $1.9 billion in 2028, and $1.5 billion in 2029. In addition to routine capital spending to maintain operations, the preliminary estimate includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Arkansas’s portfolio, as well as to support customer growth, including Ironwood Power Station (formerly Lake Catherine Unit 5), Jefferson Power Station and Arkansas Cypress Solar; investments in ANO 1 and 2; distribution and Utility support spending to improve reliability and customer experience; transmission spending to improve reliability while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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

Entergy Arkansas, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

counterparties to those changes, indirect effects on the price and availability of non-tariffed goods, and the effectiveness of mitigation measures.

Entergy Arkansas is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

Entergy Arkansas’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
$120,316	($15,190)	$65,835	($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 2030. 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 September 30, 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 two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO. As of September 30, 2025, $35.4 million in letters of credit were outstanding under Entergy Arkansas’s uncommitted letter of credit facilities. 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 September 30, 2025, there were $24.1 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.

Ironwood Power Station

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 Ironwood Power Station (formerly 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. In May 2025, Entergy Arkansas filed a motion for clarification concerning the appropriate calculation of the benchmark that was below the estimated cost of Ironwood Power Station and was based upon older technology and dated pricing. Entergy Arkansas will have the opportunity to later present all actual costs to the APSC for review and a prudence determination of final costs, including costs incremental to the benchmark. Entergy Arkansas proposes to recover the costs of constructing Ironwood Power Station through the Generating Arkansas Jobs Act rider, which was approved by the APSC in October 2025. The facility is expected to be in service by the end of 2028.

Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Jefferson Power Station

In August 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Jefferson Power Station, an approximately 754 MW natural gas-fired combined cycle combustion turbine facility to be located in Jefferson County, Arkansas. In September 2025 other parties, including the APSC general staff, filed testimony opposing the resource pending further information, although the APSC general staff recognized the capacity need for the resource and that Entergy Arkansas had satisfied the statutory requirements for a certificate of environmental compatibility and public need. Entergy Arkansas filed testimony further supporting its application in September and October 2025. A hearing was held in October 2025, and an APSC decision is expected by January 2026. Entergy Arkansas proposes to recover the costs of constructing Jefferson Power Station through the Generating Arkansas Jobs Act rider, which was approved by the APSC in October 2025. Subject to receipt of required regulatory approval and other conditions, the facility is expected to be in service by the end of 2029.

Special Rate Contract and Arkansas Cypress Solar

In September 2025, Entergy Arkansas filed an application with the APSC seeking approval of a long-term special rate contract between Altitude, LLC, a subsidiary of Alphabet, Inc. (Google) and Entergy Arkansas for the sale of electricity to a new large-scale data center in West Memphis, Arkansas. A procedural schedule was established with a hearing to be held in November 2025. In October 2025 the APSC general staff filed testimony finding that based on its evaluation of Entergy Arkansas’s application and the results of the ratepayer impact measure test, the special rate contract meets the requirements of the APSC’s promotional practice rules and is in the public interest. No other parties filed testimony.

Also in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. Entergy Arkansas is seeking public interest and prudence findings from the APSC to construct the Arkansas Cypress Solar facility in furtherance of its long-term special rate contract with Google. A procedural schedule has been established with a hearing to be held in December 2025. In October 2025 the APSC general staff filed responsive testimony opposing the project cost and seeking additional information. Subsequently, the APSC general staff submitted supplemental testimony to update its initial conclusion and recommendations, noting the Cypress Solar facility is a reasonable project and recommending the APSC approve the project under certain conditions. The Arkansas Attorney General also filed testimony supporting the project but seeking additional information. Entergy Arkansas proposes to recover the costs of constructing the Arkansas Cypress Solar facility through the Generating Arkansas Jobs Act rider, which was approved by the APSC in October 2025. 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

2025 Formula Rate Plan Filing

In July 2025, Entergy Arkansas filed with the APSC its 2025 formula rate plan filing to set its formula rate for the 2026 calendar year.  The filing contained an evaluation of Entergy Arkansas’s earnings for the 2026

Entergy Arkansas, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

projected year and a netting adjustment for the 2024 historical year.  The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2026 projected year was 8.45% resulting in a revenue deficiency of $68.9 million.  The earned rate of return on common equity for the 2024 historical year was 7.71% resulting in a $48.8 million netting adjustment.  The total proposed revenue change for the 2026 projected year and 2024 historical year netting adjustment is $117.7 million. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint.  Because Entergy Arkansas’s revenue requirement in this filing exceeded the constraint, the resulting increase was limited to $92.3 million. The APSC general staff filed their errors and objections in October 2025, proposing an adjustment to the coupon rate for the projected long-term debt issuance in 2026 and an update to annual filing year revenues that increases the constraint to $93.9 million. Entergy Arkansas filed its rebuttal in October 2025. A hearing is scheduled for November 2025, and an order is expected in December 2025. Due to no contested issues remaining outstanding among the parties to the proceeding, in October 2025, Entergy Arkansas and the APSC general staff filed a joint motion requesting the APSC cancel the hearing and issue a decision based on the pleadings and testimony in the record.

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 had been issued. Credits to retail customers were completed in second quarter 2025, and the Grand Gulf credit rider was subsequently withdrawn.

Generating Arkansas Jobs Act Rider

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.

In July 2025, Entergy Arkansas submitted a tariff filing with the APSC requesting approval of a strategic investment recovery rider, consistent with the provisions of Act 373. Entergy Arkansas requested the APSC issue an order approving the rider by October 2025. A paper hearing was held in September and October 2025. In October 2025 the APSC issued an order approving the proposed rider with several revisions, including elimination of an annual true-up adjustment, a change in cost allocation methodology, the removal of excess and deficient accumulated deferred income taxes to a separate rider, and the addition of reporting requirements. As directed by the order, in October 2025, Entergy Arkansas made a compliance filing, which the APSC general staff must review by November 2025.

Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

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 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. In June 2025 the United States Supreme Court denied Entergy Arkansas’s petition for certiorari.

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 INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$864,063	$662,148	$2,175,261	$1,892,991

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	111,248	74,310	271,900	233,505
Purchased power	73,737	64,308	197,648	172,230
Nuclear refueling outage expenses	10,770	12,482	32,019	40,671
Other operation and maintenance	203,797	193,007	555,825	545,883
Asset write-offs	—	—	—	131,775
Decommissioning	25,359	23,366	74,969	68,845
Taxes other than income taxes	52,953	40,600	124,364	111,214
Depreciation and amortization	118,005	106,004	348,394	312,961
Other regulatory charges (credits) - net	(11,323)	(109,305)	(24,203)	(81,620)
TOTAL	584,546	404,772	1,580,916	1,535,464

OPERATING INCOME	279,517	257,376	594,345	357,527

OTHER INCOME
Allowance for equity funds used during construction	6,838	8,052	16,455	19,446
Interest and investment income	19,566	16,983	47,946	94,924
Miscellaneous - net	(2,366)	(7,493)	(8,691)	(13,873)
TOTAL	24,038	17,542	55,710	100,497

INTEREST EXPENSE
Interest expense	60,819	57,214	177,619	161,358
Allowance for borrowed funds used during construction	(3,234)	(3,928)	(7,929)	(9,491)
TOTAL	57,585	53,286	169,690	151,867

INCOME BEFORE INCOME TAXES	245,970	221,632	480,365	306,157

Income taxes	54,230	35,862	102,909	57,308

NET INCOME	191,740	185,770	377,456	248,849

Net loss attributable to noncontrolling interest	(752)	(957)	(2,832)	(3,600)

EARNINGS APPLICABLE TO MEMBER'S EQUITY	$192,492	$186,727	$380,288	$252,449

See Notes to Financial Statements.


ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$377,456	$248,849
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	489,931	436,279
Deferred income taxes, tax credits, and non-current taxes accrued	290,262	69,609
Asset write-offs	—	131,775
Changes in assets and liabilities:
Receivables	(100,623)	76,233
Fuel inventory	(3,462)	19,675
Accounts payable	62,799	(24,338)
Taxes accrued	2,797	14,976
Interest accrued	32,550	33,080
Deferred fuel costs	(49,533)	(16,795)
Other working capital accounts	(2,310)	(24,630)
Provisions for estimated losses	1,729	9,981
Other regulatory assets	(22,707)	177,319
Other regulatory liabilities	160,749	70,199
Pension and other postretirement funded status	(28,104)	(40,943)
Other assets and liabilities	(129,834)	(344,514)
Net cash flow provided by operating activities	1,081,700	836,755
INVESTING ACTIVITIES
Construction expenditures	(721,721)	(566,117)
Allowance for equity funds used during construction	16,455	19,446
Payment for purchase of plant and assets	(3,517)	(541,618)
Nuclear fuel purchases	(81,859)	(122,065)
Proceeds from sale of nuclear fuel	40,601	33,213
Proceeds from nuclear decommissioning trust fund sales	101,314	482,594
Investment in nuclear decommissioning trust funds	(128,792)	(491,890)
Changes in money pool receivable - net	(120,316)	(65,835)



Other	1,115	30
Net cash flow used in investing activities	(896,720)	(1,252,242)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	402,018	1,088,957
Retirement of long-term debt	(101,218)	(635,916)


Capital contributions from parent	—	695,000
Changes in money pool payable - net	(15,190)	(145,385)

Other	1,069	49,382
Net cash flow provided by financing activities	286,679	1,052,038

Net increase in cash and cash equivalents	471,659	636,551
Cash and cash equivalents at beginning of period	4,747	3,632
Cash and cash equivalents at end of period	$476,406	$640,183

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized	$143,065	$126,356
Income taxes - net (includes production tax credit sale proceeds of $160,179 in 2025 and $— in 2024)	($160,179)	$1,569
Noncash investing activities:
Accrued construction expenditures	$55,510	$46,231

See Notes to Financial Statements.


ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$11,314	$1,306
Temporary cash investments	465,092	3,441
Total cash and cash equivalents	476,406	4,747
Accounts receivable:
Customer	230,624	139,234
Allowance for doubtful accounts	(6,020)	(4,672)
Associated companies	156,097	35,412
Other	70,872	70,927
Accrued unbilled revenues	136,091	125,824
Total accounts receivable	587,664	366,725
Deferred fuel costs	4,375	—
Fuel inventory - at average cost	53,399	49,937
Materials and supplies	417,556	384,238
Deferred nuclear refueling outage costs	20,024	48,879
Prepayments and other	53,844	41,404
TOTAL	1,613,268	895,930

OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds	1,787,712	1,604,428
Other	794	797
TOTAL	1,788,506	1,605,225

UTILITY PLANT
Electric	16,671,929	16,371,182
Construction work in progress	663,518	320,447
Nuclear fuel	229,925	257,533
TOTAL UTILITY PLANT	17,565,372	16,949,162
Less - accumulated depreciation and amortization	6,538,719	6,275,150
UTILITY PLANT - NET	11,026,653	10,674,012

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	1,722,817	1,700,110
Other	217,630	198,706
TOTAL	1,940,447	1,898,816

TOTAL ASSETS	$16,368,874	$15,073,983

See Notes to Financial Statements.


ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$690,000	$—
Accounts payable:
Associated companies	71,054	85,137
Other	294,019	210,040
Customer deposits	135,160	129,267
Taxes accrued	96,012	93,215
Interest accrued	70,927	38,377
Deferred fuel costs	—	45,158
Other	68,078	55,313
TOTAL	1,425,250	656,507

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	1,787,752	1,489,169
Accumulated deferred investment tax credits	25,168	26,069
Regulatory liability for income taxes - net	425,899	417,561
Other regulatory liabilities	983,576	831,165
Decommissioning	1,766,552	1,691,583
Accumulated provisions	78,208	76,479

Long-term debt	4,741,589	5,122,494
Other	294,335	298,951
TOTAL	10,103,079	9,953,471

Commitments and Contingencies

EQUITY
Member's equity	4,829,125	4,448,837
Noncontrolling interest	11,420	15,168
TOTAL	4,840,545	4,464,005

TOTAL LIABILITIES AND EQUITY	$16,368,874	$15,073,983

See Notes to Financial Statements.


ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Ended September 30, 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

Net income (loss)	(825)	96,184	95,359

Capital contribution from parent	—	420,000	420,000

Distributions to noncontrolling interest	(31)	—	(31)
Balance at June 30, 2024	18,675	4,499,793	4,518,468

Net income (loss)	(957)	186,727	185,770



Distributions to noncontrolling interest	(449)	—	(449)
Balance at September 30, 2024	$17,269	$4,686,520	$4,703,789


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

Net income (loss)	(889)	100,082	99,193

Distributions to noncontrolling interest	(275)	—	(275)
Balance at June 30, 2025	12,632	4,636,633	4,649,265

Net income (loss)	(752)	192,492	191,740



Distributions to noncontrolling interest	(460)	—	(460)
Balance at September 30, 2025	$11,420	$4,829,125	$4,840,545

See Notes to Financial Statements.

ENTERGY LOUISIANA, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Third Quarter 2025 Compared to Third Quarter 2024

Net income decreased $6.9 million primarily due to lower retail electric price, higher other operation and maintenance expenses, higher depreciation and amortization expenses, and higher interest expense. The decrease was partially offset by higher other income.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $233.6 million primarily due to expenses of $151.5 million ($110.7 million net-of-tax), recorded in second quarter 2024, primarily consisting of regulatory charges to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023. Also contributing to the increase was higher other income and higher volume/weather. The increase was partially offset by higher interest expense, higher depreciation and amortization expenses, and higher other operation and maintenance expenses. See Note 2 to the financial statements in the Form 10-K for discussion of the agreement in principle and the subsequently filed global stipulated settlement agreement.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

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


			Amount
			(In Millions)
2024 operating revenues			$1,478.1
Fuel, rider, and other revenues that do not significantly affect net income			198.9
Volume/weather			6.5
Effect of sale of natural gas distribution business			(13.3)
Retail electric price			(37.0)
2025 operating revenues			$1,633.2

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 an increase in industrial usage, partially offset by a decrease in weather-adjusted residential usage and the effect of less favorable weather on residential and

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

commercial sales. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the chlor-alkali and industrial gases industries.

The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues in third quarter 2025 as a result of the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025.

The retail electric price variance is primarily due to a decrease in Entergy Louisiana's formula rate plan revenues for a two month period beginning in September 2025, resulting from earnings above the authorized return on common equity for the 2024 test year. See Note 2 to the financial statements herein for discussion of the 2024 formula rate plan proceeding.

Total electric energy sales for Entergy Louisiana for the three months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	4,546	4,586	(1)
Commercial	3,297	3,295	—
Industrial	9,442	9,201	3
Governmental	213	214	—
Total retail	17,498	17,296	1
Sales for resale:
Associated companies	2,064	1,582	30
Non-associated companies	257	531	(52)
Total	19,819	19,409	2

See Note 12 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:


			Amount
			(In Millions)
2024 operating revenues			$3,956.7
Fuel, rider, and other revenues that do not significantly affect net income			461.0
Volume/weather			40.4
Effect of sale of natural gas distribution business			(13.3)
Retail electric price			—
2025 operating revenues			$4,444.8

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

The volume/weather variance is primarily due to 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 chlor-alkali, petroleum refining, industrial gases, and petrochemicals industries.

Retail electric price remained unchanged primarily due to a decrease in Entergy Louisiana's formula rate plan revenues for a two month period beginning in September 2025, resulting from earnings above the authorized return on common equity for the 2024 test year, offset by increases in Entergy Louisiana’s formula rate plan revenues, including an increase in the distribution recovery mechanism, effective September 2024 and from an interim rate adjustment effective March 2025. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2023 and 2024 formula rate plan proceedings.

Total electric energy sales for Entergy Louisiana for the nine months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	11,299	11,094	2
Commercial	8,615	8,550	1
Industrial	27,159	25,669	6
Governmental	611	631	(3)
Total retail	47,684	45,944	4
Sales for resale:
Associated companies	5,045	4,322	17
Non-associated companies	652	1,307	(50)
Total	53,381	51,573	4

See Note 12 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Other operation and maintenance expenses increased primarily due to:

an increase of $11.8 million in power delivery expenses primarily due to a higher scope of work performed in 2025 as compared to 2024 and higher vegetation maintenance costs;
the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and instead to evaluate an alternative transmission solution. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” below for discussion of the Bayou Power Station project;
an increase of $5.4 million in compensation and benefits costs primarily due to higher incentive-based accruals in 2025 as compared to 2024;
an increase of $4.8 million in energy efficiency expenses primarily due to higher energy efficiency costs;

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

an increase of $3.5 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024; and
several individually insignificant items.

The increase was partially offset by a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025, and contract costs of $5.5 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives. See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024.

Depreciation and amortization expenses increased primarily due to additions to plant in service and increases in nuclear depreciation rates effective September 2024 and September 2025 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.

Entergy Louisiana 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 increased primarily due to:

an increase of $12 million in the amortization of tax gross ups on customer advances for construction;
an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2025, including the Franklin Farms Power Station Units 1 and 2 project;
changes in decommissioning trust fund activity, including portfolio rebalancing of the River Bend decommissioning trust fund in third quarter 2024; and
an increase of $6.9 million in interest earned on money pool investments.

The increase was partially offset by a decrease of $4.4 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations.

Interest expense increased primarily due to the issuance of $750 million of 5.80% Series mortgage bonds in January 2025 and carrying costs of $10 million in 2025 on customer advances for construction. 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 Franklin Farms Power Station Units 1 and 2 project.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Other operation and maintenance expenses increased primarily due to:

an increase of $13.8 million in power delivery expenses primarily due to a higher scope of work performed in 2025 as compared to 2024 and higher vegetation maintenance costs;
the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and instead to evaluate an alternative transmission solution. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” below for discussion of the Bayou Power Station project;
an increase of $6.8 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024;
an increase of $5.6 million in transmission costs allocated by MISO. See Note 2 to the financial statements

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

in the Form 10-K for discussion of the recovery of these costs;

an increase of $3.8 million in loss provisions;
an increase of $3.8 million in bad debt expense;
an increase of $3.5 million in insurance expenses primarily due to higher premiums in 2025 as compared to 2024; and
several individually insignificant items.

The increase was partially offset by:

a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025;
contract costs of $14.3 million in 2024 related to operational performance, customer service, and organizational health initiatives; and
a decrease of $7.9 million in nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2025 as compared to 2024.

Other regulatory charges (credits) - net includes regulatory charges of $150.2 million, recorded in second quarter 2024, to reflect the effects of an agreement in principle between Entergy Louisiana and the LPSC staff and the intervenors in July 2024 to renew Entergy Louisiana’s formula rate plan and resolve a number of other retail dockets and matters, including all formula rate plan test years prior to 2023. In addition, Entergy Louisiana 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. See Note 2 to the financial statements in the Form 10-K for discussion of the agreement in principle and the subsequently filed global stipulated settlement agreement.

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 Franklin Farms Power Station Units 1 and 2 project;
an increase of $24.5 million in the amortization of tax gross ups on customer advances for construction;
a $17.1 million true-up of Entergy Louisiana's MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025. See Note 2 to the financial statements herein for discussion of the 2024 formula rate plan filing; and
an increase of $21.1 million in interest earned on money pool investments.

The increase was offset by a decrease of $13.1 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations.

Interest expense increased primarily due to the issuance of $750 million of 5.80% Series mortgage bonds in January 2025, the issuance of $700 million of 5.15% Series mortgage bonds in August 2024, and carrying costs of $24.4 million in 2025 on customer advances for construction. The increase was partially offset by an increase in the

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

allowance for borrowed funds used during construction due to higher construction work in progress in 2025, including the Franklin Farms Power Station Units 1 and 2 project.

Income Taxes

The effective income tax rates were 19.5% for the third quarter 2025 and 19% for the nine months ended September 30, 2025. The differences in the effective income tax rates for the third quarter 2025 and the nine months ended September 30, 2025 versus the federal statutory rate of 21% were primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests, partially offset by the accrual for state income taxes.

The effective income tax rate was 22.6% for the third quarter 2024. The difference in the effective income tax rate for the third quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes and the amortization of state accumulated deferred income taxes as a result of tax rate changes, partially offset by 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.

The effective income tax rate was 19.6% for the nine months ended September 30, 2024. The difference in the effective income tax rate for the nine months ended September 30, 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 state accumulated deferred income taxes as a result of tax rate changes.

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 sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025.

Entergy Louisiana, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	1,762,375	1,320,416
Investing activities	(2,021,195)	(881,330)
Financing activities	307,958	(340,519)
Net increase in cash and cash equivalents	49,138	98,567

Cash and cash equivalents at end of period	$376,240	$101,339

Operating Activities

Net cash flow provided by operating activities increased $442 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

higher collections from customers;
the receipt of $204.7 million in advance payments related to customer agreements in 2025, which are recorded as current liabilities and included within changes in other working capital accounts; and
the receipt of $146.4 million in payments related to the sale of nuclear production tax credits in third quarter 2025. See Note 3 to the financial statements in the Form 10-K and see Note 10 to the financial statements herein for discussion of the nuclear production tax credits.

The increase was partially offset by:

higher fuel and purchased power payments and the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;
an increase of $96.9 million in interest paid;
the timing of payments to vendors;
an increase of $26 million in spending on nuclear refueling outages in 2025 as compared to 2024; and
$21 million received in third quarter 2024 related to the wind up of the Nelson Industrial Steam Company (NISCO) partnership. See Note 9 to the financial statements in the Form 10-K for a discussion of the NISCO partnership.

Investing Activities

Net cash flow used in investing activities increased $1,139.9 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

an increase of $505 million in non-nuclear generation construction expenditures primarily due to higher spending on the Franklin Farms Power Station Units 1 and 2 project and the Sterlington Facility solar project;
an increase of $267.1 million in distribution construction expenditures primarily due to increased investment in the resilience of the distribution system;

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Management’s Financial Discussion and Analysis

an increase of $237.2 million in transmission construction expenditures primarily due to higher capital expenditures as a result of increased development in Entergy Louisiana’s service area, higher spending on the Amite South transmission projects, and increased spending on various other transmission projects in 2025;
an increase of $111.6 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2025;
an increase in cash used of $110.7 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;
money pool activity;
payments totaling $41.4 million to Entergy Texas for the transfer of assets related to the Segno Solar and Votaw Solar facilities to Entergy Louisiana in third quarter 2025. See “Uses and Sources of Capital - Segno Solar and Votaw Solar” below for further discussion of the facilities and transfer; and
cash collateral of $37 million posted in 2025 to support Entergy Louisiana’s obligations to MISO.

The increase was partially offset by the receipt of $203 million in proceeds from the sale of the natural gas distribution business on July 1, 2025 and the receipt of $33.5 million from the storm reserve escrow account in 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 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 $64.8 million for the nine months ended September 30, 2025 compared to increasing by $10.5 million for the nine months ended September 30, 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

Entergy Louisiana’s financing activities provided $308 million of cash for the nine months ended September 30, 2025 compared to using $340.5 million of cash for the nine months ended September 30, 2024 primarily due to the following activity:

the repayment, prior to maturity, of $1 billion of 0.95% Series mortgage bonds in August 2024;
the issuance of $750 million of 5.80% Series mortgage bonds in January 2025;
the repayment, prior to maturity, of $400 million of 5.40% Series mortgage bonds in April 2024;
an increase of $306.5 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements;
a decrease of $117.9 million in common equity distributions paid in 2025 in order to maintain Entergy Louisiana’s capital structure;
money pool activity;
net long-term borrowings of $82.2 million in 2025 compared to net repayments of $27.6 million in 2024 on the nuclear fuel company variable interest entities’ credit facilities;
the issuances of $500 million of 5.35% Series mortgage bonds and $700 million of 5.70% Series mortgage bonds, each in March 2024;
the issuance of $700 million of 5.15% Series mortgage bonds in August 2024;
the repayment, prior to maturity, of $190 million of 3.78% Series mortgage bonds in March 2025; and
the repayment, prior to maturity, of $110 million of 3.78% Series mortgage bonds in March 2025.

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 nine months ended September 30, 2024.

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Management’s Financial Discussion and Analysis

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 Louisiana’s debt to capital ratio is shown in the following table.


	September 30, 2025		December 31, 2024
Debt to capital	46.6	%	46.0	%


Effect of subtracting cash	(0.9	%)	(0.8	%)
Net debt to net capital (non-GAAP)	45.7	%	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.

Entergy Louisiana is developing its capital investment plan for 2026 through 2029 and currently anticipates making $20.3 billion in capital investments during that period, including $5.5 billion in 2026, $5.3 billion in 2027, $4.6 billion in 2028, and $4.9 billion in 2029. In addition to routine capital spending to maintain operations, the preliminary estimate includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Louisiana’s portfolio, as well as to support customer growth, including Segno Solar, Votaw Solar, Bogalusa West Solar, Franklin Farms Power Station Units 1 and 2, and Waterford 5 Power Station; investments in River Bend and Waterford 3; distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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

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Management’s Financial Discussion and Analysis

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 is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

Entergy Louisiana’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
$97,462	$32,668	$10,473	($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 2030. 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 September 30, 2025, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Louisiana is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO. As of September 30, 2025, $161.9 million in letters of credit were outstanding under Entergy Louisiana’s uncommitted letter of credit facilities. 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 September 30, 2025, $61.4 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity and $58.4 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.

2021 Solar Certification and the Geaux Green Option

As discussed in the Form 10-K, in November 2021, Entergy Louisiana filed an application with the LPSC seeking certification of and approval for the addition of four new solar photovoltaic resources with a combined nameplate capacity of 475 megawatts (the 2021 Solar Portfolio) and the implementation of a new green tariff, the Geaux Green Option (Rider GGO). The 2021 Solar Portfolio consists of four resources, which include (i) the Vacherie Facility, a 150 megawatt resource in St. James Parish; (ii) the Sunlight Road Facility, a 50 megawatt resource in Washington Parish; (iii) the St. Jacques Facility, a 150 megawatt resource in St. James Parish; and (iv) the Elizabeth Facility, a 125 megawatt resource in Allen Parish. The St. Jacques Facility would be acquired through a build-own-transfer agreement; the remaining resources involve power purchase agreements. The Sunlight Road Facility and the Elizabeth Facility each achieved commercial operation in 2024, and the Vacherie Facility and the St. Jacques Facility originally had estimated in service dates in 2025.

In August 2022 the parties reached a settlement certifying the 2021 Solar Portfolio and approving implementation of Rider GGO. In September 2022 the LPSC approved the settlement. Following the LPSC approval, the St. James Parish council issued a moratorium on new land use permits for solar facilities until the later of March 2023 or the completion of an environmental and economic impact study. In November 2023, St. James Parish lifted the moratorium and adopted an ordinance modifying the parish’s land use plan to establish solar as an

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Management’s Financial Discussion and Analysis

approved land use and defining corresponding solar regulations. In March 2024 the project developer submitted a solar energy facility farm permit application to the St. James Parish planning commission to request approval for the Vacherie and St. Jacques Facilities. In June 2024 the St. James Parish council denied the application and following this denial, the project developer and one of the project’s ground lessors filed separate lawsuits seeking to overturn the council’s decision. The council’s decision was subsequently affirmed by the Louisiana 23rd Judicial District Court. Entergy Louisiana is no longer pursuing the addition of resources through an acquisition of the St. Jacques Facility or through a power purchase agreement with the Vacherie Facility.

Alternative FRP and Certification

As discussed in the Form 10-K, in 2023, Entergy Louisiana made a filing to seek approval from the LPSC for an alternative to the requests for proposals (RFP) process that would enable the acquisition of up to 3 GW of solar resources on a faster timeline than the current RFP and certification processes allow. In June 2024 the LPSC issued an order approving the application. In August 2024, Entergy Louisiana issued the first RFP pursuant to this order in solicitation of solar resources that meet the requirements of the LPSC’s order. In July 2025, Entergy Louisiana filed an application requesting that the LPSC approve and certify the Bogalusa West Solar facility, a 200 MW single axis tracking solar photovoltaic power facility in Washington Parish, Louisiana. In October 2025 the LPSC voted to grant Entergy Louisiana’s application and approve the Bogalusa West Solar facility. The facility is expected to be in service by 2028.

Bayou Power Station

In March 2024, Entergy Louisiana filed an application with the LPSC seeking certification that the public convenience and necessity would be served by the construction of the Bayou Power Station, a 112 MW aggregated capacity floating natural gas power station with black-start capability in Leeville, Louisiana and an associated microgrid that would serve nearby areas, including Port Fourchon, Golden Meadow, Leeville, and Grand Isle. In its application, Entergy Louisiana noted that the estimated cost of the Bayou Power Station was $411 million, including estimated costs of transmission interconnection and other related costs. In October 2024, Entergy Louisiana filed a motion to suspend the procedural schedule in this proceeding in order to evaluate certain recent developments related to the project including potential changes to the estimated cost of the project. In October 2025, Entergy Louisiana filed with the LPSC a motion to dismiss its application without prejudice, noting that this project has been canceled and that Entergy Louisiana is evaluating an alternative transmission solution. In third quarter 2025, Entergy Louisiana expensed $10.8 million of project costs related to the Bayou Power Station project.

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. Two of the new combined cycle combustion turbine generation resources are to be located at Franklin Farms in north Louisiana (Franklin Farms Power Station Units 1 and 2). 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

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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 February 2025, Entergy Louisiana filed supplemental testimony with the LPSC stating that the third combined cycle combustion turbine resource presented in the October 2024 application (Waterford 5 Power Station) would be sited at Entergy Louisiana’s Waterford site in Killona, Louisiana, alongside existing Entergy Louisiana generation resources. The testimony also notes that Entergy Louisiana is negotiating with the customer in response to the customer’s request to increase the load associated with its project in north Louisiana. The testimony indicates further that the additional load can be served without additional generation capacity beyond what was presented in the October 2024 application, but that additional transmission facilities, which will be funded directly by the customer, are needed to serve this additional load.

In April 2025 and May 2025 the LPSC staff and certain intervenors each filed their direct testimony and cross-answering testimony, respectively. The LPSC staff’s testimony discussed the significant projected benefits associated with the data center project; however, both the LPSC staff and such intervenors also identified purported risks associated with constructing the requested resources based on the terms and conditions under which the customer would be taking service. Both the LPSC staff and such intervenors also recommended that the LPSC impose certain conditions on its approval which, if adopted, would support approval of Entergy Louisiana’s application. The LPSC staff’s recommendations included 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 recommended 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 advocated 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. In May 2025, Entergy Louisiana filed its rebuttal testimony responding to the direct and cross-answering testimony of the LPSC staff and intervenors. The rebuttal testimony expressed support for or no opposition to the LPSC’s adoption of certain of the proposed recommendations and identified why other proposed recommendations should not be adopted. In addition, the rebuttal testimony stated that the negotiations related to the increase in the load amount for the customer’s project had concluded and that a rider to the electric service agreement reflecting this increase had been executed. In advance of the July 2025 hearing, Entergy Louisiana reached a settlement agreement with the LPSC staff and three separate intervenors. In August 2025, Entergy Louisiana, the LPSC staff, and the three separate intervenors jointly moved for consideration of the settlement agreement, and the LPSC issued an order accepting the settlement agreement. Franklin Farms Power Station Units 1 and 2 are expected to be in service in 2028, and Waterford 5 Power Station is expected to be in service in 2029.

Amite South 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

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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 or minimum bill revenues 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. In June 2025, Entergy Louisiana filed rebuttal testimony. The hearing was held in August 2025, and an LPSC decision is expected in first quarter 2026.

Segno Solar and Votaw Solar

In July 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 Segno Solar facility, a 170 MW solar facility to be located in Polk County, Texas, and the Votaw Solar facility, a 141 MW solar facility to be located in Hardin County, Texas. In August 2025, Entergy Texas filed, and the ALJs with the State Office of Administrative Hearings granted, an unopposed motion to withdraw the application. In September 2025, Entergy Texas and Entergy Louisiana entered into assignment and assumption agreements pursuant to which Entergy Texas assigned, and Entergy Louisiana assumed, certain interests in the Segno Solar and Votaw Solar facilities, and the associated assets were transferred in third quarter 2025 from Entergy Texas to Entergy Louisiana for approximately $41.4 million, subject to adjustment per the assignment and assumption agreements. Entergy Louisiana expects to file an application with the LPSC in fourth quarter 2025 seeking certification and approval to construct the Segno Solar facility and Votaw Solar facility.

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 approved by the LPSC also in August 2024, Entergy Louisiana filed its formula rate plan evaluation report for its 2023 calendar year operations. Consistent with the global stipulated settlement agreement, the filing reflected a 9.7% allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the 2023 test year, however, the bandwidth provisions of the formula rate plan were 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

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and requesting that the LPSC issue an order accepting Entergy Louisiana’s evaluation report and, ultimately, resolving this matter. In March 2025 the LPSC issued an order accepting the evaluation report.

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

2024 Formula Rate Plan Filing

In May 2025, Entergy Louisiana filed its formula rate plan evaluation report for its 2024 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, 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 test year 2024, however, any earnings above the allowed return on common equity were to be returned to customers through a credit, pursuant to the terms of the global stipulated settlement agreement. The 2024 test year evaluation produced an earned return on common equity of 9.98%, which was within the approved formula rate plan bandwidth, but above the allowed return on common equity, resulting in customer credits of $31.9 million to be returned to customers during September and October 2025.

Other changes in formula rate plan revenue were driven by higher nuclear depreciation rates, additions to transmission and distribution plant in service reflected through the transmission recovery mechanism and distribution recovery mechanism, and the expiration of customer credits related to the LPSC’s order, offset by increased customer credits resulting from an increase in net MISO revenues reflected through the MISO cost recovery mechanism and the reduction in the Louisiana corporate income tax rate effective January 1, 2025, reflected through the tax adjustment mechanism, as discussed below. Excluding the customer credit for earnings above the authorized return on common equity discussed above, the net result of these changes on an annualized basis was a $2 million increase in formula rate plan revenue.

As noted above, the 2024 evaluation report included the effects of the change in Louisiana state tax law that reduced the corporate income tax rate to a flat 5.5% (from the then-current highest marginal rate of 7.5%) effective January 1, 2025. As such, the 2024 evaluation report reflected the calculation of current and deferred income tax expenses as well as the revaluation of accumulated deferred income taxes based on the income tax laws currently in effect. The 2024 evaluation report proposed that the rate effects associated with the revaluation of accumulated deferred income taxes, including the collection of any net accumulated deferred income tax deficiency and any related effects on rate base, should be reflected in the tax adjustment mechanism consistent with the treatment of similar Tax Cuts and Jobs Act and prior state tax change-related impacts. The effects of the change in tax law on Entergy Louisiana’s authorized return on rate base were also reflected in the 2024 evaluation report consistent with the treatment cited above, including a credit in the extraordinary cost change mechanism for the prospective change in Entergy Louisiana’s authorized return and a credit within the tax adjustment mechanism for over-collection of income tax expense through August 2025. Subject to LPSC review, the resulting changes from the 2024 formula rate plan evaluation report became effective for bills rendered during the first billing cycle of September 2025, subject to refund. In August 2025 the LPSC staff filed its errors and objections report, as required by the formula rate plan’s process, and found that Entergy Louisiana’s formula rate plan is in compliance with the LPSC’s requirements and the global stipulated settlement agreement. The LPSC staff reserved the right to determine

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whether Entergy Louisiana appropriately credited certain revenues to customers during the September and October 2025 billing cycles.

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 included 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 LPSC accepted the report in June 2025.

In June 2025 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings (for Entergy Louisiana’s gas operations). The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from January 2023 through June 2025. Discovery is ongoing, and no audit report has been filed.

COVID-19 Orders

As discussed in the Form 10-K, in April 2020 the LPSC issued an order authorizing utilities to record as a regulatory asset expenses incurred from the suspension of disconnections and collection of late fees imposed by LPSC orders associated with the COVID-19 pandemic. In April 2023, Entergy Louisiana filed an application proposing to utilize approximately $1.6 billion in certain low interest debt to generate earnings to apply toward the reduction of the COVID-19 regulatory asset, as well as to conduct additional outside right-of-way vegetation management activities and fund the minor storm reserve account. In that filing, Entergy Louisiana proposed to delay repayment of certain shorter-term first mortgage bonds that were issued to finance storm restoration costs until the costs could be securitized, and to invest the funds that otherwise would be used to repay those bonds in the money pool to take advantage of the spread between prevailing interest rates on investments in the money pool and the interest rates on the bonds. The LPSC approved Entergy Louisiana’s requested relief in June 2023. In November 2024, Entergy Louisiana submitted a filing to the LPSC requesting that the LPSC review Entergy Louisiana’s computation of the COVID-19 regulatory asset as well as Entergy Louisiana’s proposal to offset the regulatory asset against the net interest earned on the short-term debt funds, resulting in no increased costs to customers. In granting Entergy Louisiana’s requested relief in June 2023, the LPSC ordered that any amount of earnings exceeding the amount of the COVID-19 regulatory asset be transferred to Entergy Louisiana’s storm reserve escrow account. In May 2025 the LPSC staff filed direct testimony finding that Entergy Louisiana had complied with the relevant orders and recommending approval of the requested treatment. In June 2025, Entergy Louisiana and the LPSC staff filed a joint motion requesting a hearing for the admission of an uncontested stipulated settlement agreement in the matter. A settlement hearing took place in July 2025. The LPSC voted to approve the settlement at its September 2025 meeting and issued an order accepting the settlement in October 2025. Pursuant to the terms of the approved settlement, in third quarter 2025 Entergy Louisiana offset the COVID-19 regulatory asset with a regulatory liability for the deferred earnings related to certain low interest debt, as described above.

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. The filing was rejected on procedural grounds. In June 2025 the LPSC approved a directive providing, among other things, that any utility seeking securitization for storm costs this year must file a proposed

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financing order with its application and that the LPSC staff must use best efforts to deliver the financing order to the LPSC for consideration at the next available Business and Executive meeting after the application is filed.

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. The following is an update to that discussion.

NRC Reactor Oversight Process

The NRC’s Reactor Oversight Process is a program to collect information about plant performance, assess the information for its safety significance, and provide for appropriate licensee and NRC response. The NRC evaluates plant performance by analyzing two distinct inputs: inspection findings resulting from the NRC’s inspection program and performance indicators reported by the licensee. The evaluations result in the placement of each plant in one of the NRC’s Reactor Oversight Process Action Matrix columns: “licensee response column,” or Column 1, “regulatory response column,” or Column 2, “degraded cornerstone column,” or Column 3, “multiple/repetitive degraded cornerstone column,” or Column 4, and “unacceptable performance,” or Column 5. Plants in Column 1 are subject to normal NRC inspection activities. Plants in Column 2, Column 3, or Column 4 are subject to progressively increasing levels of inspection by the NRC with, in general, progressively increasing levels of associated costs. Continued plant operation is not permitted for plants in Column 5. River Bend is currently in Column 1, and Waterford 3 is currently in Column 2.

In June 2025 the NRC placed Waterford 3 in Column 2, effective second quarter 2025, based on the failure to properly develop and implement adequate maintenance instructions for the fuel linkage connection to the mechanical governor for an emergency diesel generator. In September 2025, Waterford 3 successfully completed the supplemental inspection related to the issue. Waterford 3 will return to Column 1, effective third quarter 2025, pending receipt of the NRC’s formal inspection report.

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


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$1,633,050	$1,464,627	$4,400,500	$3,898,864
Natural gas	147	13,466	44,307	57,793
TOTAL	1,633,197	1,478,093	4,444,807	3,956,657

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	457,405	328,444	997,513	815,102
Purchased power	191,852	147,281	750,819	514,429
Nuclear refueling outage expenses	10,260	19,617	43,440	57,171
Other operation and maintenance	288,595	266,743	821,819	802,890
Decommissioning	19,857	20,340	58,882	60,065
Taxes other than income taxes	70,661	52,006	204,892	192,474
Depreciation and amortization	204,742	193,422	604,206	573,827
Other regulatory charges (credits) - net	(38,283)	(18,689)	(147,431)	93,255
TOTAL	1,205,089	1,009,164	3,334,140	3,109,213

OPERATING INCOME	428,108	468,929	1,110,667	847,444

OTHER INCOME
Allowance for equity funds used during construction	17,780	8,653	51,456	23,460
Interest and investment income	63,095	34,182	117,782	112,374
Interest and investment income - affiliated	74,351	77,877	226,117	238,356
Miscellaneous - net	(42,636)	(38,689)	(59,362)	(106,510)
TOTAL	112,590	82,023	335,993	267,680

INTEREST EXPENSE
Interest expense	121,008	101,842	358,866	297,573
Allowance for borrowed funds used during construction	(6,498)	(2,988)	(19,374)	(8,058)
TOTAL	114,510	98,854	339,492	289,515

INCOME BEFORE INCOME TAXES	426,188	452,098	1,107,168	825,609

Income taxes	83,299	102,303	209,902	161,977

NET INCOME	342,889	349,795	897,266	663,632

Net income attributable to noncontrolling interests	731	775	2,228	2,358

EARNINGS APPLICABLE TO MEMBER'S EQUITY	$342,158	$349,020	$895,038	$661,274

See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)

Net Income	$342,889	$349,795	$897,266	$663,632

Other comprehensive loss
Pension and other postretirement adjustment (net of tax benefit of $618, $746, $3,225, and $2,237)	(1,818)	(2,024)	(4,921)	(6,071)
Other comprehensive loss	(1,818)	(2,024)	(4,921)	(6,071)

Comprehensive Income	341,071	347,771	892,345	657,561
Net income attributable to noncontrolling interests	731	775	2,228	2,358
Comprehensive Income Applicable to Member’s Equity	$340,340	$346,996	$890,117	$655,203

See Notes to Financial Statements.

(Page left blank intentionally)


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$897,266	$663,632
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	725,547	694,525
Deferred income taxes, tax credits, and non-current taxes accrued	466,155	173,820
Changes in working capital:
Receivables	(130,177)	(212,759)
Fuel inventory	14,049	7,580
Accounts payable	77,648	(54,722)
Taxes accrued	45,112	140,193
Interest accrued	(51,451)	(15,338)
Deferred fuel costs	7,455	61,893
Other working capital accounts	(24,705)	(254,340)
Changes in provisions for estimated losses	(19,742)	11,205
Changes in other regulatory assets	105,800	(92,733)
Changes in other regulatory liabilities	(89,444)	384,975
Changes in pension and other postretirement funded status	(31,098)	(33,849)
Other	(230,040)	(153,666)
Net cash flow provided by operating activities	1,762,375	1,320,416
INVESTING ACTIVITIES
Construction expenditures	(2,176,426)	(1,031,418)
Allowance for equity funds used during construction	38,486	23,460
Payment for purchase of assets	(41,435)	—
Proceeds from sale of business and assets	203,330	1,495
Nuclear fuel purchases	(139,361)	(74,597)
Proceeds from sale of nuclear fuel	17,240	63,197
Payments to storm reserve escrow account	(7,530)	(9,843)
Receipt from storm reserve escrow account	33,456	—

Redemption of preferred membership interests of affiliate	202,517	194,604

Proceeds from nuclear decommissioning trust fund sales	485,421	554,371
Investment in nuclear decommissioning trust funds	(535,139)	(600,068)
Changes in money pool receivable - net	(64,794)	(10,473)
Insurance proceeds received for property damages	—	7,907
Decrease (increase) in other investments	(36,960)	35

Net cash flow used in investing activities	(2,021,195)	(881,330)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	1,821,175	2,650,002
Retirement of long-term debt	(1,302,628)	(2,199,926)




Change in money pool payable - net	—	(156,166)

Customer advances received for construction	583,479	121,441
Customer advances used for construction	(241,142)	(85,563)

Common equity distributions paid	(546,250)	(664,100)
Other	(6,676)	(6,207)
Net cash flow provided by (used in) financing activities	307,958	(340,519)

Net increase in cash and cash equivalents	49,138	98,567
Cash and cash equivalents at beginning of period	327,102	2,772
Cash and cash equivalents at end of period	$376,240	$101,339

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized	$403,534	$306,589
Income taxes - net (includes production tax credit sale proceeds of $146,355 in 2025 and $— in 2024)	($146,355)	$58
Noncash investing activities:
Accrued construction expenditures	$242,395	$102,761

See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$1,681	$327
Temporary cash investments	374,559	326,775
Total cash and cash equivalents	376,240	327,102
Accounts receivable:
Customer	395,875	294,089
Allowance for doubtful accounts	(7,554)	(3,036)
Associated companies	184,496	103,055
Other	67,234	39,056
Accrued unbilled revenues	201,110	213,026
Total accounts receivable	841,161	646,190

Fuel inventory - at average cost	36,168	49,515
Materials and supplies	759,659	782,459
Deferred nuclear refueling outage costs	50,960	31,121

Current assets held for sale	—	2,474
Prepayments and other	374,068	84,236
TOTAL	2,438,256	1,923,097

OTHER PROPERTY AND INVESTMENTS
Investment in affiliate preferred membership interests	4,054,480	4,256,997
Decommissioning trust funds	2,701,311	2,429,088
Non-utility property - at cost (less accumulated depreciation)	454,756	410,611
Storm reserve escrow account	230,792	256,718
Other	10,051	9,749
TOTAL	7,451,390	7,363,163

UTILITY PLANT
Electric	29,981,521	28,736,547
Natural gas	—	33,775
Construction work in progress	1,629,311	761,090
Nuclear fuel	319,575	288,084
TOTAL UTILITY PLANT	31,930,407	29,819,496
Less - accumulated depreciation and amortization	11,152,062	10,794,817
UTILITY PLANT - NET	20,778,345	19,024,679

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:

Other regulatory assets	1,541,114	1,637,967
Deferred fuel costs	168,122	168,122
Non-current assets held for sale	—	173,669
Other	84,503	57,853
TOTAL	1,793,739	2,037,611

TOTAL ASSETS	$32,461,730	$30,348,550

See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$320,000	$300,000
Accounts payable:
Associated companies	106,641	108,688
Other	713,371	533,087
Customer deposits	173,264	169,544
Taxes accrued	74,127	29,002
Interest accrued	68,735	120,186
Deferred fuel costs	12,149	5,421
Customer advances	346,421	151,662
Other	110,666	96,426
TOTAL	1,925,374	1,514,016

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	2,988,563	2,477,954
Accumulated deferred investment tax credits	85,303	88,679
Regulatory liability for income taxes - net	330,393	355,432
Other regulatory liabilities	1,634,337	1,692,547
Decommissioning	1,908,427	1,842,855
Accumulated provisions	259,881	279,623
Pension and other postretirement liabilities	144,578	160,577
Long-term debt	10,070,778	9,566,453
Customer advances for construction	634,179	291,842
Other	536,546	479,178
TOTAL	18,592,985	17,235,140

Commitments and Contingencies

EQUITY
Member’s equity	11,851,780	11,503,030
Accumulated other comprehensive income	48,737	53,658
Noncontrolling interests	42,854	42,706
TOTAL	11,943,371	11,599,394

TOTAL LIABILITIES AND EQUITY	$32,461,730	$30,348,550

See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Ended September 30, 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

Net income	788	130,326	—	131,114
Other comprehensive loss	—	—	(2,023)	(2,023)
Common equity distributions	—	(566,600)	—	(566,600)
Distributions to LURC	(299)	—	—	(299)
Other	—	(40)	—	(40)
Balance at June 30, 2024	45,533	11,122,661	50,751	11,218,945

Net income	775	349,020	—	349,795
Other comprehensive loss	—	—	(2,024)	(2,024)
Distributions to LURC	(842)	—	—	(842)
Other	—	(11)	—	(11)
Balance at September 30, 2024	$45,466	$11,471,670	$48,727	$11,565,863

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

Net income	745	299,435	—	300,180
Other comprehensive loss	—	—	(2,132)	(2,132)
Common equity distributions	—	(458,750)	—	(458,750)
Distributions to LURC	(319)	—	—	(319)
Other	—	(12)	—	(12)
Balance at June 30, 2025	42,996	11,560,886	50,555	11,654,437

Net income	731	342,158	—	342,889
Other comprehensive loss	—	—	(1,818)	(1,818)
Common equity distributions	—	(51,250)	—	(51,250)
Distributions to LURC	(873)	—	—	(873)
Other	—	(14)	—	(14)
Balance at September 30, 2025	$42,854	$11,851,780	$48,737	$11,943,371

See Notes to Financial Statements.

ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Third Quarter 2025 Compared to Third Quarter 2024

Net income increased $33.7 million primarily due to $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement, higher other income, higher volume/weather, and higher retail electric price, partially offset by higher interest expense and higher other operation and maintenance expenses.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $57.8 million primarily due to higher retail electric price, higher other income, higher volume/weather, and $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement. The increase was partially offset by higher other operation and maintenance expenses, a regulatory charge, recorded in the first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance, higher interest expense, and higher taxes other than income taxes.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

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


			Amount
			(In Millions)
2024 operating revenues			$508.2
Fuel, rider, and other revenues that do not significantly affect net income			32.7
Purchased power agreement termination proceeds			15.0
Volume/weather			12.5
Retail electric price			8.7
2025 operating revenues			$577.1

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 purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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 technology and primary metals industries.

The retail electric price variance is primarily due to an increase in formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2025. See Note 2 to the financial statements herein for discussion of the interim facilities rate adjustment.

Total electric energy sales for Entergy Mississippi for the three months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	1,810	1,774	2
Commercial	1,394	1,380	1
Industrial	743	647	15
Governmental	116	113	3
Total retail	4,063	3,914	4
Sales for resale:
Non-associated companies	1,605	1,287	25
Total	5,668	5,201	9

See Note 12 to the financial statements herein for additional discussion of Entergy Mississippi’s operating revenues.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:


			Amount
			(In Millions)
2024 operating revenues			$1,365.9
Fuel, rider, and other revenues that do not significantly affect net income			33.6
Retail electric price			47.0
Volume/weather			31.2
Purchased power agreement termination proceeds			15.0
2025 operating revenues			$1,492.7

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 formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2025. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing, and see Note 2 to the financial statements herein for discussion of the interim facilities rate adjustment.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Total electric energy sales for Entergy Mississippi for the nine months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	4,428	4,317	3
Commercial	3,568	3,554	—
Industrial	1,915	1,736	10
Governmental	305	304	—
Total retail	10,216	9,911	3
Sales for resale:
Non-associated companies	4,024	4,244	(5)
Total	14,240	14,155	1

See Note 12 to the financial statements herein for additional discussion of Entergy Mississippi’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Other operation and maintenance expenses increased primarily due to:

an increase of $10.1 million in power delivery expenses primarily due to higher vegetation maintenance costs;
an increase of $1.8 million in non-nuclear generation expenses primarily due to a higher scope of work performed in 2025 as compared to 2024; and
an increase of $1.5 million in compensation and benefits costs primarily due to higher incentive-based accruals in 2025 as compared to 2024.

The increase was partially offset by a decrease of $5.2 million in storm damage provisions and contract costs of $2.3 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives. See Note 2 to the financial statements in the Form 10-K for discussion of the storm damage mitigation and restoration rider.

Taxes other than income taxes increased primarily due to increases in local franchise taxes as a result of higher retail revenues in 2025 as compared to 2024 and increases in ad valorem taxes resulting from higher assessments.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Other income increased primarily due to:

an increase in the allowance for equity funds used during construction due to higher construction in progress in 2025, including the Vicksburg Advanced Power Station project;
an increase of $3.7 million in interest earned on money pool investments; and
an increase of $2.4 million in the amortization of tax gross ups on customer advances for construction.

Interest expense increased primarily due to the issuance of $600 million of 5.80% Series mortgage bonds in March 2025.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Other operation and maintenance expenses increased primarily due to:

an increase of $21.9 million in power delivery expenses primarily due to higher vegetation maintenance costs;
an increase of $4.8 million in bad debt expense; and
an increase of $4.6 million in storm damage provisions. See Note 2 to the financial statements in the Form 10-K for discussion of the storm damage mitigation and restoration rider.

The increase was partially offset by contract costs of $6 million in 2024 related to operational performance, customer service, and organizational health initiatives.

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; and
regulatory credits of $7.3 million, recorded in second quarter 2024, to reflect the effects of the joint stipulation reached in the 2024 formula rate plan filing proceeding. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing.

Other income increased primarily due to:

an increase of $10 million in interest earned on money pool investments;
an increase of $10 million 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, including the Vicksburg Advanced Power Station project.

Interest expense increased primarily due to the issuance of $600 million of 5.80% Series mortgage bonds in March 2025, the issuance of $300 million of 5.85% Series mortgage bonds in May 2024, and carrying costs of $10.8 million in 2025 on customer advances for construction.

Income Taxes

The effective income tax rates were 24.1% for the third quarter 2025 and 23.9% for the nine months ended September 30, 2025. The differences in the effective income tax rates for the third quarter 2025 and the nine months ended September 30, 2025 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.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

The effective income tax rates were 25.0% for the third quarter 2024 and 24.2% for the nine months ended September 30, 2024. The differences in the effective income tax rates for the third quarter 2024 and the nine months ended September 30, 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” herein and in the Form 10-K for discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	559,353	448,253
Investing activities	(1,121,132)	(481,457)
Financing activities	734,761	63,707
Net increase in cash and cash equivalents	172,982	30,503

Cash and cash equivalents at end of period	$328,675	$37,133

Operating Activities

Net cash flow provided by operating activities increased $111.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the receipt of $108.4 million in advance payments related to customer agreements in 2025, which are recorded as current liabilities and included within changes in other working capital accounts;
higher collections from customers, including $25 million of deferred revenue in 2025; and
the receipt of a $15 million liquidated damages payment in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

The increase was partially offset by the timing of payments to vendors and higher fuel and purchased power payments. See Note 2 to the financial statements 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 $639.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

an increase of $592.1 million in non-nuclear generation construction expenditures primarily due to higher spending on the Delta Blues Advanced Power Station project, the Vicksburg Advanced Power Station project, the Penton Solar project, the Traceview Advanced Power Station project, and the Delta Solar project;

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

money pool activity; and
an increase of $27 million in distribution construction expenditures primarily due to increased investment in the resilience of the distribution system.

The increase was partially offset by:

a decrease of $16.7 million in transmission construction expenditures primarily due to decreased spending on various transmission projects in 2025;
a decrease of $12.9 million in information technology capital expenditures primarily due to decreased spending on technology upgrade projects in 2025; and
the receipt of a $14.5 million payment for the partial sale of transmission rights and excess land related to the sale of Entergy Mississippi’s interest in the Independence power plant in third quarter 2025.

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 $68.9 million for the nine months ended September 30, 2025 compared to increasing $3.4 million for the nine months ended September 30, 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 $671.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the issuance of $600 million of 5.80% Series mortgage bonds in March 2025;
an increase of $93.8 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements;
the repayment, prior to maturity, of $100 million of 3.75% Series mortgage bonds in June 2024;
money pool activity;
a capital contribution of $62.5 million received from Entergy Corporation in February 2025 in order to maintain Entergy Mississippi’s capital structure; and
$44.6 million in common equity distributions paid in 2024 in order to maintain Entergy Mississippi’s capital structure.

The increase was partially offset by the issuance of $300 million of 5.85% Series mortgage bonds in May 2024.

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 $73.8 million for the nine months ended September 30, 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 Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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.


	September 30, 2025		December 31, 2024
Debt to capital	52.8	%	50.4	%
Effect of subtracting cash	(2.9	%)	(1.6	%)
Net debt to net capital (non-GAAP)	49.9	%	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.

Entergy Mississippi is developing its capital investment plan for 2026 through 2029 and currently anticipates making $5.5 billion in capital investments during that period, including $2.2 billion in 2026, $1.7 billion in 2027, $0.9 billion in 2028, and $0.7 billion in 2029. In addition to routine capital spending to maintain operations, the preliminary estimate includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Mississippi’s portfolio, as well as to support customer growth, including Delta Blues Advanced Power Station, Delta Solar, Penton Solar, Traceview Advanced Power Station, and Vicksburg Advanced Power Station; distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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,

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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 is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

Entergy Mississippi’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
$84,151	$15,218	$3,400	($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 2030. 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 September 30, 2025, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Mississippi is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. As of September 30, 2025, $103.9 million in MISO letters of credit and $1.3 million in non-MISO letters of credit were outstanding under Entergy Mississippi’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

Traceview Advanced Power Station

Entergy Mississippi plans to construct, own, and operate the Traceview Advanced Power Station, a 754 MW combined cycle combustion turbine facility to be located in the City of Ridgeland, Madison County, Mississippi. The facility will be powered primarily by natural gas, and it will also be enabled for future carbon capture and storage and for hydrogen co-firing optionality. The Traceview Advanced Power Station is expected to cost in excess of $1 billion. The facility is expected to be in service in 2029.

Vicksburg Advanced Power Station

In October 2025, Entergy Mississippi announced plans to construct, own, and operate the Vicksburg Advanced Power Station, a 754 MW combined-cycle combustion turbine facility, to be located in the City of Vicksburg, Warren County, Mississippi. The facility will be powered primarily by natural gas, and it will also be enabled for future carbon capture and storage and for hydrogen co-firing optionality. The Vicksburg Advanced Power Station is expected to cost in excess of $1 billion. The facility is expected to be in service in 2028.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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 also to be within the formula rate plan bandwidth. The 2025 test year filing showed 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 proposed 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.

In June 2025, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a joint stipulation that confirmed the 2025 test year filing, with the exception of immaterial adjustments to certain operation and maintenance expenses. The formula rate plan reflected an earned return on rate base of 7.68% for calendar year 2025, resulting in no change in formula rate plan revenues for 2025. Pursuant to the stipulation, Entergy Mississippi’s 2024 look-back filing reflected an earned return on rate base of 7.55%, which also resulted in no change in formula rate plan revenues for 2024. In addition, the stipulation included the recovery of the two outside-the-bandwidth changes discussed above as well as the ratemaking treatment of customer contributions (deferred revenue and prepaid contributions in aid of construction). In June 2025 the MPSC approved the joint stipulation with rates effective in July 2025.

Interim Facilities Rate Adjustments to the Formula Rate Plan

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.

Federal Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.

Entergy Mississippi, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

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


ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$577,132	$508,171	$1,492,716	$1,365,921

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	55,639	43,223	134,751	225,050
Purchased power	102,140	85,939	280,311	220,441
Other operation and maintenance	92,577	86,016	256,443	224,922
Taxes other than income taxes	51,641	48,461	138,951	124,267
Depreciation and amortization	69,081	68,167	205,543	201,215
Other regulatory charges (credits) - net	19,796	26,844	72,150	30,226
TOTAL	390,874	358,650	1,088,149	1,026,121

OPERATING INCOME	186,258	149,521	404,567	339,800

OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	5,492	1,227	15,904	6,239
Interest and investment income	5,126	338	13,996	1,479
Miscellaneous - net	(306)	(5,626)	3,011	(9,019)
TOTAL	10,312	(4,061)	32,911	(1,301)

INTEREST EXPENSE
Interest expense	37,912	28,109	110,632	83,005
Allowance for borrowed funds used during construction	(2,054)	(468)	(6,036)	(2,419)
TOTAL	35,858	27,641	104,596	80,586

INCOME BEFORE INCOME TAXES	160,712	117,819	332,882	257,913

Income taxes	38,672	29,436	79,704	62,533

NET INCOME	122,040	88,383	253,178	195,380

Net income (loss) attributable to noncontrolling interest	66	(3,584)	(2,825)	(7,619)

EARNINGS APPLICABLE TO MEMBER'S EQUITY	$121,974	$91,967	$256,003	$202,999

See Notes to Financial Statements.

(Page left blank intentionally)


ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$253,178	$195,380
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	205,543	201,215
Deferred income taxes, tax credits, and non-current taxes accrued	27,643	57,459
Changes in assets and liabilities:
Receivables	(54,324)	(34,116)
Fuel inventory	(6,055)	2,335
Accounts payable	(10,353)	(484)
Taxes accrued	32,390	(14,571)
Interest accrued	32,568	12,855
Deferred fuel costs	(103,852)	13,938
Other working capital accounts	83,123	(20,790)
Provisions for estimated losses	(1,350)	(4,534)
Other regulatory assets	71,677	30,049
Other regulatory liabilities	2,850	18,346
Pension and other postretirement funded status	(8,418)	(12,703)
Other assets and liabilities	34,733	3,874
Net cash flow provided by operating activities	559,353	448,253

INVESTING ACTIVITIES
Construction expenditures	(1,074,274)	(484,952)
Allowance for equity funds used during construction	7,679	6,239
Proceeds from sale of assets	14,469	—
Changes in money pool receivable - net	(68,933)	(3,400)

Receipt from storm reserve escrow account	—	736
Increase in other investments	(73)	(80)
Net cash flow used in investing activities	(1,121,132)	(481,457)

FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	592,562	396,032
Retirement of long-term debt	—	(200,000)
Capital contribution from parent	62,500	—

Change in money pool payable - net	—	(73,769)
Customer advances received for construction	159,955	8,552
Customer advances used for construction	(78,170)	(20,546)
Common equity distributions paid	—	(44,633)
Other	(2,086)	(1,929)
Net cash flow provided by financing activities	734,761	63,707

Net increase in cash and cash equivalents	172,982	30,503
Cash and cash equivalents at beginning of period	155,693	6,630
Cash and cash equivalents at end of period	$328,675	$37,133

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$76,202	$68,370
Income taxes - net	$—	$2,356
Noncash investing activities:
Accrued construction expenditures	$51,995	$33,632

See Notes to Financial Statements.


ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$687	$184
Temporary cash investments	327,988	155,509
Total cash and cash equivalents	328,675	155,693
Accounts receivable:
Customer	150,312	97,609
Allowance for doubtful accounts	(3,494)	(2,172)
Associated companies	93,324	23,909
Other	20,369	25,148
Accrued unbilled revenues	82,980	75,740
Total accounts receivable	343,491	220,234

Fuel inventory - at average cost	21,018	14,963
Materials and supplies	119,155	113,256
Prepayments and other	37,092	19,764
TOTAL	849,431	523,910

OTHER PROPERTY AND INVESTMENTS
Non-utility property - at cost (less accumulated depreciation)	4,471	4,482

Other	951	880
TOTAL	5,422	5,362

UTILITY PLANT
Electric	8,133,759	7,860,409
Construction work in progress	1,106,207	487,273
TOTAL UTILITY PLANT	9,239,966	8,347,682
Less - accumulated depreciation and amortization	2,630,538	2,511,091
UTILITY PLANT - NET	6,609,428	5,836,591

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	454,170	525,847
Other	106,097	97,260
TOTAL	560,267	623,107

TOTAL ASSETS	$8,024,548	$6,988,970

See Notes to Financial Statements.


ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES

Accounts payable:
Associated companies	$56,960	$58,087
Other	185,297	283,755
Customer deposits	97,734	94,009
Taxes accrued	211,414	179,024
Interest accrued	53,235	20,667
Deferred fuel costs	22,464	126,316
Customer advances	98,654	—
Other	24,587	20,720
TOTAL	750,345	782,578

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	907,175	870,116
Accumulated deferred investment tax credits	13,128	13,446
Regulatory liability for income taxes - net	173,317	180,851
Other regulatory liabilities	69,928	59,544
Asset retirement cost liabilities	26,174	25,110
Accumulated provisions	45,850	47,200

Long-term debt	3,020,984	2,427,073
Customer advances for construction	194,403	112,618
Other	98,578	61,446
TOTAL	4,549,537	3,797,404

Commitments and Contingencies

EQUITY
Member's equity	2,719,289	2,400,786
Noncontrolling interest	5,377	8,202
TOTAL	2,724,666	2,408,988

TOTAL LIABILITIES AND EQUITY	$8,024,548	$6,988,970

See Notes to Financial Statements.


ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Ended September 30, 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

Net income (loss)	(1,733)	81,298	79,565
Common equity distributions	—	(22,300)	(22,300)

Balance at June 30, 2024	14,718	2,278,193	2,292,911

Net income (loss)	(3,584)	91,967	88,383
Common equity distributions	—	(22,333)	(22,333)
Balance at September 30, 2024	$11,134	$2,347,827	$2,358,961

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

Net income (loss)	(412)	84,684	84,272


Balance at June 30, 2025	5,311	2,597,315	2,602,626

Net income	66	121,974	122,040


Balance at September 30, 2025	$5,377	$2,719,289	$2,724,666

See Notes to Financial Statements.

ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Third Quarter 2025 Compared to Third Quarter 2024

Net income decreased $18.5 million primarily due to a $12.8 million ($9.6 million net-of-tax) charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered, and lower volume/weather. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $39.5 million 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. The increase was partially offset by a $12.8 million ($9.6 million net-of-tax) charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered, and 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. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

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


			Amount
			(In Millions)
2024 operating revenues			$232.5
Fuel, rider, and other revenues that do not significantly affect net income			15.0
Effect of sale of natural gas distribution business			(18.8)
Volume/weather			(7.4)
Retail electric price			(1.0)
2025 operating revenues			$220.3

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.

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues in third quarter 2025 as a result of the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

The volume/weather variance is primarily due to a decrease in weather-adjusted residential usage and a decrease in commercial usage, partially offset by the effect of more favorable weather on residential sales.

The retail electric price variance is primarily due to a decrease in formula rate plan rates effective September 2025 in accordance with the terms of the 2025 formula rate plan filing, partially offset by 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 herein and in the Form 10-K for discussion of the formula rate plan filings.

Total electric energy sales for Entergy New Orleans for the three months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	766	778	(2)
Commercial	605	614	(1)
Industrial	116	114	2
Governmental	217	232	(6)
Total retail	1,704	1,738	(2)
Sales for resale:
Non-associated companies	762	426	79
Total	2,466	2,164	14

See Note 12 to the financial statements herein for additional discussion of Entergy New Orleans’s operating revenues.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:


			Amount
			(In Millions)
2024 operating revenues			$624.8
Fuel, rider, and other revenues that do not significantly affect net income			6.7
Effect of sale of natural gas distribution business			(18.8)
Volume/weather			(3.7)
Retail electric price			2.4
2025 operating revenues			$611.4

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues in third quarter 2025 as a result of the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

The volume/weather variance is primarily due to a decrease in commercial usage.

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, partially offset by a decrease in formula rate plan rates effective September 2025 in accordance with the terms of the 2025 formula rate plan filing. See Note 2 to the financial statements herein in the Form 10-K for discussion of the formula rate plan filings.

Total electric energy sales for Entergy New Orleans for the nine months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	1,893	1,866	1
Commercial	1,578	1,600	(1)
Industrial	293	307	(5)
Governmental	589	606	(3)
Total retail	4,353	4,379	(1)
Sales for resale:
Non-associated companies	1,114	1,407	(21)
Total	5,467	5,786	(6)

See Note 12 to the financial statements herein for additional discussion of Entergy New Orleans’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Other operation and maintenance expenses decreased primarily due to a decrease of $3.2 million in gas operations expenses resulting from the absence of expenses in third quarter 2025 and a $2.4 million gain, recorded in third quarter 2025, both resulting from the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Asset write-offs includes a $12.8 million charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Depreciation and amortization expenses decreased primarily due to the absence of depreciation and amortization expenses associated with natural gas plant in service in third quarter 2025 as a result of the sale of the

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Interest expense increased primarily due to an increase of $2.1 million in carrying costs on regulatory liability balances.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Other operation and maintenance expenses decreased primarily due to:

a decrease of $3.2 million in gas operations expenses resulting from the absence of expenses in third quarter 2025 and a $2.4 million gain, recorded in third quarter 2025, both as a result of the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025;
contract costs of $2.7 million in 2024 related to operational performance, customer service, and organizational health initiatives; and
$1.8 million in costs recognized in 2024 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.

The decrease was partially offset by:

an increase of $1.7 million in energy efficiency expenses primarily due to higher energy efficiency costs, partially offset by the timing of recovery from customers; and
an increase of $1.2 million in non-nuclear generation expenses primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024.

Depreciation and amortization expenses remained relatively unchanged primarily due to additions to plant in service, substantially offset by the absence of depreciation and amortization expenses associated with natural gas plant in service in third quarter 2025 as a result of the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

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.

Other income decreased primarily due to the deferral of certain other postretirement benefit expense credits, 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 2024 formula rate plan filing and Note 11 to the financial statements in the Form 10-K for discussion of the other postretirement benefits accounting treatment.

Interest expense increased primarily due to an increase of $8.8 million in carrying costs on regulatory liability balances.

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Income Taxes

The effective income tax rate was 25.5% for the third quarter 2025. The difference in the effective income tax rate for the third quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes.

The effective income tax rate was 24.6% for the nine months ended September 30, 2025. The difference in the effective income tax rate for the nine months ended September 30, 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 27.0% for the third quarter 2024. The difference in the effective income tax rate for the third quarter 2024 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes.

The effective income tax rate was 18.7% for the nine months ended September 30, 2024. The difference in the effective income tax rate for the nine months ended September 30, 2024 versus the federal statutory rate of 21% was primarily due to certain book and tax differences related to utility plant items, the amortization of state accumulated deferred income taxes as a result of a tax rate change, the amortization of investment tax credits, and 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” herein and 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 sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	97,801	123,928
Investing activities	156,869	(124,564)
Financing activities	(217,747)	35,123
Net increase in cash and cash equivalents	36,923	34,487

Cash and cash equivalents at end of period	$68,700	$34,513

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Operating Activities

Net cash flow provided by operating activities decreased $26.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the timing of payments to vendors and higher fuel and purchased power payments and 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.

Investing Activities

Entergy New Orleans’s investing activities provided $156.9 million of cash for the nine months ended September 30, 2025 compared to using $124.6 million of cash for the nine months ended September 30, 2024 primarily due to the following activity:

the receipt of $288.3 million in proceeds from the sale of the natural gas distribution business on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025;
a decrease of $13.7 million in distribution construction expenditures primarily due to lower capital expenditures for storm restoration in 2025;
the receipt of $10.3 million from the storm reserve escrow account in 2025. See “Uses and Sources of Capital - Hurricane Francine” below for discussion of the Hurricane Francine proceeding;
an increase of $19.5 million in non-nuclear generation construction expenditures primarily due to a higher scope of work performed during plant outages in 2025 as compared to 2024; and
money pool activity.

Increases in Entergy New Orleans’s receivable from the money pool are a use of cash flow, and Entergy New Orleans’s receivable from the money pool increased by $14.7 million for the nine months ended September 30, 2025 compared to increasing by $3.6 million for the nine months ended September 30, 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

Entergy New Orleans’s financing activities used $217.7 million of cash for the nine months ended September 30, 2025 compared to providing $35.1 million of cash for the nine months ended September 30, 2024 primarily due to the following activity:

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;
$140 million in common equity distributions paid in 2025 in order to maintain Entergy New Orleans’s capital structure;
the repayment, at maturity, of $78 million of 3.00% Series mortgage bonds in March 2025;
the repayment, at maturity, of an $85 million unsecured term loan in June 2024; and
money pool activity.

Decreases in Entergy New Orleans’s payable to the money pool are a use of cash flow, and Entergy New Orleans’s payable to the money pool decreased $21.7 million for the nine months ended September 30, 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 New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

Capital Structure

Entergy New Orleans’s debt to capital ratio is shown in the following table.


	September 30, 2025		December 31, 2024
Debt to capital	52.1	%	51.5	%
Effect of subtracting cash	(2.8	%)	(1.1	%)
Net debt to net capital (non-GAAP)	49.3	%	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.

Entergy New Orleans is developing its capital investment plan for 2026 through 2029 and currently anticipates making $785 million in capital investments during that period, including $225 million in 2026, $160 million in 2027, $185 million in 2028, and $215 million in 2029. In addition to routine capital spending to maintain operations, the preliminary estimate includes distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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 is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

Entergy New Orleans’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
$17,843	$3,146	$3,601	($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 September 30, 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 September 30, 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.

Hurricane Francine

In September 2024, Hurricane Francine caused damage to the areas served by Entergy New Orleans. The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages. In December 2024, in accordance with the terms of its storm recovery reserve escrow agreement, Entergy New Orleans transmitted to the City Council a notice of intent to withdraw up to $20 million in estimated storm costs resulting from Hurricane Francine from its storm recovery reserve escrow account, subject to the City Council’s certification of those costs. In January 2025, the City Council authorized the withdrawal, and in February 2025, Entergy New Orleans withdrew $10.3 million from its storm recovery reserve escrow account. In October 2025, Entergy New Orleans withdrew an additional $2.8 million from its storm recovery reserve escrow account. Also in October 2025, Entergy New Orleans submitted an application to the City Council seeking certification that the approximately $13.1 million in storm restoration costs associated with Hurricane Francine were reasonable, necessary, and prudently incurred.

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% compared to the authorized return on equity of 9.35%. Without adjustments, this would have resulted in a decrease in electric rates of $13.8 million. The decrease in electric rates was 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 commenced the previously authorized recovery of certain regulatory costs and requested a revenue-neutral recovery to offset a proposed reduction in bill payment late fees. Taking into account these

Entergy New Orleans, LLC and Subsidiaries

Management’s Financial Discussion and Analysis

proposed adjustments, the filing presented a decrease in authorized electric revenues of $8.6 million. The City Council’s advisors issued their report in July 2025 seeking a reduction in Entergy New Orleans’s requested electric formula rate plan revenues of approximately $7.2 million due to certain proposed cost realignments and disallowances, of which $4.1 million is associated with Entergy New Orleans’s proposed implementation, on a revenue neutral basis, of a proposed reduction in customer late fees. The City Council’s advisors also proposed rate mitigation in the amount of $4.4 million through offsets to the formula rate plan funded by certain regulatory liabilities. In August 2025 the City Council approved an agreement to settle the 2025 formula rate plan filing. Effective with the first billing cycle of September 2025, Entergy New Orleans implemented rates reflecting an amount agreed upon by Entergy New Orleans and the City Council, per the approved process for formula rate implementation. The electric formula rate plan decrease implemented was $19.2 million.

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 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


ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$220,290	$213,663	$542,996	$549,268
Natural gas	8	18,852	68,357	75,549
TOTAL	220,298	232,515	611,353	624,817

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	33,798	19,385	72,707	68,524
Purchased power	67,849	67,947	204,716	192,647
Other operation and maintenance	36,341	42,500	119,268	127,552
Asset write-offs	12,795	—	12,795	—
Taxes other than income taxes	15,454	16,509	45,326	46,118
Depreciation and amortization	19,064	21,199	63,267	63,243
Other regulatory charges (credits) - net	(3,786)	1,738	(10,376)	84,917
TOTAL	181,515	169,278	507,703	583,001

OPERATING INCOME	38,783	63,237	103,650	41,816

OTHER INCOME
Allowance for equity funds used during construction	491	572	1,291	1,461
Interest and investment income	1,172	421	1,774	878
Miscellaneous - net	(1,001)	(298)	(2,374)	54
TOTAL	662	695	691	2,393

INTEREST EXPENSE
Interest expense	11,972	10,600	37,683	30,936
Allowance for borrowed funds used during construction	(270)	(238)	(709)	(609)
TOTAL	11,702	10,362	36,974	30,327

INCOME BEFORE INCOME TAXES	27,743	53,570	67,367	13,882

Income taxes	7,080	14,438	16,563	2,597

NET INCOME	$20,663	$39,132	$50,804	$11,285

See Notes to Financial Statements.


ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$50,804	$11,285
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	63,267	63,243
Deferred income taxes, tax credits, and non-current taxes accrued	9,979	(890)
Asset write-offs	12,795	—
Changes in assets and liabilities:
Receivables	(8,667)	(124,000)
Fuel inventory	3,961	20
Accounts payable	(7,430)	(885)
Prepaid taxes and taxes accrued	8,564	3,470
Interest accrued	1,326	2,608
Deferred fuel costs	4,053	(626)
Other working capital accounts	(3,290)	(5,129)
Provisions for estimated losses	(10,156)	4,101
Other regulatory assets	48,029	10,139
Other regulatory liabilities	(41,353)	169,542
Pension and other postretirement funded status	10,393	(7,009)
Other assets and liabilities	(44,474)	(1,941)
Net cash flow provided by operating activities	97,801	123,928

INVESTING ACTIVITIES
Construction expenditures	(127,504)	(119,271)
Allowance for equity funds used during construction	1,291	1,461
Changes in money pool receivable - net	(14,697)	(3,601)
Receipt from storm reserve escrow account	10,333	—
Payments to storm reserve escrow account	(2,450)	(4,014)
Proceeds from sale of business	288,285	—
Changes in securitization account	1,611	861

Net cash flow provided by (used in) investing activities	156,869	(124,564)

FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	79,693	148,943
Retirement of long-term debt	(158,000)	(91,245)

Changes in money pool payable - net	—	(21,651)
Common equity distributions paid	(140,000)	—
Other	560	(924)
Net cash flow provided by (used in) financing activities	(217,747)	35,123

Net increase in cash and cash equivalents	36,923	34,487
Cash and cash equivalents at beginning of period	31,777	26
Cash and cash equivalents at end of period	$68,700	$34,513

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$35,553	$26,678
Income taxes - net	$—	$2,598
Noncash investing activities:
Accrued construction expenditures	$8,102	$3,422

See Notes to Financial Statements.


ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$223	$374
Temporary cash investments	68,477	31,403
Total cash and cash equivalents	68,700	31,777
Securitization recovery trust account	—	1,611
Accounts receivable:
Customer	78,961	65,731
Allowance for doubtful accounts	(4,515)	(6,735)
Associated companies	19,669	5,844
Other	5,414	9,467
Accrued unbilled revenues	31,438	33,296
Total accounts receivable	130,967	107,603

Fuel inventory - at average cost	150	320
Materials and supplies	30,313	25,516

Current assets held for sale	—	13,100
Prepayments and other	14,596	12,128
TOTAL	244,726	192,055

OTHER PROPERTY AND INVESTMENTS

Storm reserve escrow account	75,859	83,742
Other	9,600	832
TOTAL	85,459	84,574

UTILITY PLANT
Electric	2,216,707	2,160,165
Natural gas	—	43,279
Construction work in progress	50,474	18,269
TOTAL UTILITY PLANT	2,267,181	2,221,713
Less - accumulated depreciation and amortization	772,014	768,305
UTILITY PLANT - NET	1,495,167	1,453,408

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:

Other regulatory assets	108,914	133,261
Deferred fuel costs	4,080	4,080
Non-current assets held for sale	—	284,738
Other	76,528	71,037
TOTAL	189,522	493,116

TOTAL ASSETS	$2,014,874	$2,223,153

See Notes to Financial Statements.


ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$85,000	$78,000
Payable due to associated company	1,140	1,140
Accounts payable:
Associated companies	45,195	45,479
Other	41,841	43,750
Customer deposits	30,262	28,834
Taxes accrued	17,350	8,786
Interest accrued	9,997	8,671
Deferred fuel costs	152	980

Other	11,820	14,427
TOTAL	242,757	230,067

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	212,371	201,541
Accumulated deferred investment tax credits	15,447	15,617
Regulatory liability for income taxes - net	15,058	15,000
Other regulatory liabilities	245,892	260,312

Accumulated provisions	80,137	90,293

Long-term debt	565,866	650,463
Long-term payable due to associated company	5,864	5,864
Other	23,077	56,395
TOTAL	1,163,712	1,295,485

Commitments and Contingencies

EQUITY
Member's equity	608,405	697,601
TOTAL	608,405	697,601

TOTAL LIABILITIES AND EQUITY	$2,014,874	$2,223,153

See Notes to Financial Statements.


ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY
For the Nine Months Ended September 30, 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

Net income			21,133

Balance at June 30, 2024			778,907

Net income			39,132

Balance at September 30, 2024			$818,039

Balance at December 31, 2024			$697,601

Net income			12,099

Balance at March 31, 2025			709,700

Net income			18,042

Balance at June 30, 2025			727,742

Net income			20,663
Common equity distributions			(140,000)
Balance at September 30, 2025			$608,405

See Notes to Financial Statements.

ENTERGY TEXAS, INC. AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Third Quarter 2025 Compared to Third Quarter 2024

Net income increased $11.7 million primarily due to higher retail electric price and higher volume/weather, partially offset by higher other operation and maintenance expenses, higher purchased power costs related to the procurement of capacity through MISO’s annual planning resource auction, higher interest expense, and higher taxes other than income taxes.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income increased $33.1 million primarily due to higher retail electric price, higher volume/weather, and higher other income, partially offset by higher purchased power costs related to the procurement of capacity through MISO’s annual planning resource auction, higher taxes other than income taxes, higher interest expense, and higher depreciation and amortization expenses.

Operating Revenues

Third Quarter 2025 Compared to Third Quarter 2024

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


			Amount
			(In Millions)
2024 operating revenues			$597.0
Fuel, rider, and other revenues that do not significantly affect net income			5.4
Retail electric price			23.3
Volume/weather			14.6
2025 operating revenues			$640.3

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 increases in the distribution cost recovery factor rider effective in December 2024 and June 2025. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the distribution cost recovery factor rider filings.

The volume/weather variance is primarily due to an increase in industrial and residential usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily in the transportation, industrial gases, petroleum refining, and wood products industries, and an increase in demand

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

from small industrial customers, partially offset by a decrease in demand from co-generation customers. The increase in residential usage is primarily due to an increase in customers.

Total electric energy sales for Entergy Texas for the three months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	2,213	2,138	4
Commercial	1,479	1,455	2
Industrial	2,574	2,506	3
Governmental	73	71	3
Total retail	6,339	6,170	3
Sales for resale:
Non-associated companies	120	141	(15)
Total	6,459	6,311	2

See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024:


			Amount
			(In Millions)
2024 operating revenues			$1,560.6
Fuel, rider, and other revenues that do not significantly affect net income			(42.0)
Retail electric price			54.6
Volume/weather			40.7
2025 operating revenues			$1,613.9

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Total electric energy sales for Entergy Texas for the nine months ended September 30, 2025 and 2024 are as follows:


	2025	2024	% Change
	(GWh)
Residential	5,514	5,205	6
Commercial	3,869	3,764	3
Industrial	7,355	6,996	5
Governmental	201	201	—
Total retail	16,939	16,166	5
Sales for resale:
Non-associated companies	264	487	(46)
Total	17,203	16,653	3

See Note 12 to the financial statements herein for additional discussion of Entergy Texas’s operating revenues.

Other Income Statement Variances

Third Quarter 2025 Compared to Third Quarter 2024

Purchased power includes an increase in third quarter 2025 of $7.9 million in costs related to the procurement of capacity through MISO’s annual planning resource auction, including the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months. Although Entergy Texas does not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates, in June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually. Entergy Texas plans to file for such a rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Other operation and maintenance expenses increased primarily due to:

an increase of $3.7 million in power delivery expenses primarily due to higher vegetation maintenance costs and a higher scope of work performed in 2025 as compared to 2024;
an increase of $1.6 million in loss provisions;
an increase of $1.5 million in bad debt expense; and
several individually insignificant items.

The increase was partially offset by contract costs of $2.6 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments.

Depreciation and amortization expenses increased primarily due to 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 Legend Power Station project and the Orange County Advanced Power Station project.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Interest expense increased primarily due to the issuance of $500 million of 5.25% Series mortgage bonds in February 2025 and the issuance of $350 million of 5.55% Series mortgage bonds in August 2024, 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 Legend Power Station project and the Orange County Advanced Power Station project.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Purchased power includes an increase in 2025 of $28.9 million in costs related to the procurement of capacity through MISO’s annual planning resource auction, including the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months. Although Entergy Texas does not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates, in June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually. Entergy Texas plans to file for such a rider to recover future capacity procurement costs at the earliest opportunity in 2026.

Other operation and maintenance expenses increased primarily due to:

an increase of $4.5 million in loss provisions;
an increase of $3.3 million in bad debt expense;
an increase of $2.7 million in power delivery expenses primarily due to higher vegetation maintenance costs;
an increase of $1.9 million in transmission costs allocated by MISO;
an increase of $1.4 million in insurance expense primarily due to higher premiums in 2025 as compared to 2024; and
several individually insignificant items.

The increase was partially offset by:

contract costs of $6.7 million in 2024 related to operational performance, customer service, and organizational health initiatives;
a decrease of $5.1 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, in 2025 as compared to 2024; and
a decrease of $1.8 million in storm damage provisions.

Depreciation and amortization expenses decreased primarily due to the recognition of $27.6 million in depreciation expense in 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, the Legend Power Station project, and the Lone Star Power Station project.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Interest expense increased primarily due to the issuance of $500 million of 5.25% Series mortgage bonds in February 2025 and the issuance of $350 million of 5.55% Series mortgage bonds in August 2024, 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, the Legend Power Station project, and the Lone Star Power Station project.

Income Taxes

The effective income tax rates were 18.3% for the third quarter 2025 and 17.2% for the nine months ended September 30, 2025. The differences in the effective income tax rates for the third quarter 2025 and the nine months ended September 30, 2025 versus the federal statutory rate of 21% were primarily due to book and tax differences related to the allowance for equity funds used during construction.

The effective income tax rates were 18.8% for the third quarter 2024 and 18.7% for the nine months ended September 30, 2024. The differences in the effective income tax rates for the third quarter 2024 and the nine months ended September 30, 2024 versus the federal statutory rate of 21% were 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.

Income Tax Legislation and Regulation

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

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	413,075	550,819
Investing activities	(1,201,029)	(576,495)
Financing activities	603,746	357,333
Net increase (decrease) in cash and cash equivalents	(184,208)	331,657

Cash and cash equivalents at end of period	$789	$353,643

Operating Activities

Net cash flow provided by operating activities decreased $137.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the timing of recovery of fuel and purchased power costs and higher fuel and purchased power payments and an increase of $23.2 million in interest paid. The decrease was partially offset by higher collections from customers, a decrease of $13.7 million in storm spending, and the timing of payments to vendors. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Investing Activities

Net cash flow used in investing activities increased $624.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase of $458 million in non-nuclear generation construction expenditures primarily due to higher spending on the Lone Star Power Station project, the Legend Power Station project, and the Orange County Advanced Power Station project and money pool activity. The increase was partially offset by:

proceeds of $41.4 million received from the transfer of assets related to the Segno Solar and Votaw Solar facilities from Entergy Texas to Entergy Louisiana in third quarter 2025. See “Uses and Sources of Capital - Segno Solar and Votaw Solar” below for discussion of the facilities and transfer;
a decrease of $15.2 million in transmission construction expenditures primarily due to decreased spending on various transmission projects in 2025; and
a decrease of $12.3 million in information technology capital expenditures primarily due to decreased spending on technology upgrade projects in 2025.

Decreases in Entergy Texas’s receivable from the money pool are a source of cash flow, and Entergy Texas’s receivable from the money pool decreased $18.5 million for the nine months ended September 30, 2025 compared to decreasing by $280.9 million for the nine months ended September 30, 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 $246.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to the issuance of $500 million of 5.25% Series mortgage bonds in February 2025 and money pool activity. The increase was partially offset by the issuance of $350 million of 5.55% Series mortgage bonds in August 2024 and a decrease of $58.5 million in advance payments from customers for construction related to transmission, distribution, and generator interconnection agreements.

Increases in Entergy Texas’s payable to the money pool are a source of cash flow, and Entergy Texas’s payable to the money pool increased $142.2 million for the nine months ended September 30, 2025.

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.


	September 30, 2025		December 31, 2024
Debt to capital	52.8	%	51.6	%
Effect of excluding securitization bonds	(1.4	%)	(1.7	%)
Debt to capital, excluding securitization bonds (non-GAAP) (a)	51.4	%	49.9	%
Effect of subtracting cash	—	%	(1.5	%)
Net debt to net capital, excluding securitization bonds (non-GAAP) (a)	51.4	%	48.4	%

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

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

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.

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.

Entergy Texas is developing its capital investment plan for 2026 through 2029 and currently anticipates making $6.5 billion in capital investments during that period, including $1.5 billion in 2026, $1.4 billion in 2027, $2.5 billion in 2028, and $1.1 billion in 2029. In addition to routine capital spending to maintain operations, the preliminary estimate includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Texas’s portfolio, including Orange County Advanced Power Station, Lone Star Power Station, and Legend Power Station; distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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 is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidiaries, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Entergy Texas’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
($142,209)	$18,504	$36,978	$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 2030. 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 September 30, 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 two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO. As of September 30, 2025, $51.5 million in letters of credit were outstanding under one of Entergy Texas’s uncommitted letter of credit facilities. 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, originally expected to be located in Liberty County, Texas. In March 2025, Entergy Texas filed testimony explaining that Entergy Texas planned to move forward with building the Lone Star Power Station on a more cost-effective alternative site in San Jacinto County, Texas. A hearing on the merits was held in April 2025. Also in April 2025, Entergy Texas, intervenors, and the PUCT staff filed initial briefs. In its initial brief, the PUCT staff recommends denial of Entergy Texas’s application or, in the alternative, approval subject to conditions that include a prudence review by an external consultant if actual project costs exceed estimated costs by more than 10%, transmission cost reporting, and weatherization of both the Legend Power Station and the Lone Star Power Station. Certain intervenors requested that the PUCT impose various conditions upon the approval of the resources, including, among others, cost recovery limitations, a direction that Entergy Texas initiate a competitive tariff proceeding to facilitate industrial sleeving, a requirement for additional regulatory approvals related to hydrogen or carbon capture and storage implementation, limits on the recovery of supplemental filing costs, and calculation of AFUDC based on an adjusted weighted average cost of capital. Reply briefs were filed in May 2025. In June 2025 the ALJs with the State Office of Administrative Hearings issued a proposal for decision, in which they recommended rejection of Entergy Texas’s application to construct the Legend Power Station and the Lone Star Power Station based upon their finding that Entergy Texas did not demonstrate the resources to be cost-effective alternatives to address the uncontested need for additional generation. In the alternative, the ALJs recommended that if the PUCT approves the resources, that conditions be imposed, including a deferral of the finding that the resources were prudently selected until Entergy Texas’s next rate case, a prudence review by an external consultant if actual project costs exceed estimated costs by more than 10%, weatherization requirements, and a requirement that Entergy Texas obtain additional regulatory approvals prior to implementing hydrogen co-firing or carbon capture and storage. The ALJs’ proposal for decision is an interim step in the certification process, and it is not binding upon the PUCT. Entergy Texas filed exceptions in July 2025. In September 2025 the PUCT issued a decision granting the application, subject to conditions that include a cost cap at Entergy Texas’s previously-filed modified estimated costs of $1.6 billion for the Legend Power Station and $799 million for the Lone Star Power Station, weatherization requirements, environmental compliance requirements, and a requirement to request additional authorization prior to implementing hydrogen co-firing or carbon capture and storage. In October 2025 an intervenor filed a motion for rehearing requesting that the PUCT modify the Lone Star Power Station cost cap to reflect the estimated project costs associated with a new project site, clarify that the cost cap is inclusive of

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

transmission upgrades, and reconsider the intervenor’s prior proposal for a “soft cost cap” below the estimated project costs, and that Entergy Texas be directed to initiate a competitive tariff proceeding to facilitate industrial sleeving of purchased power. Entergy Texas filed a response to the motion for rehearing in October 2025. Subject to receipt of required regulatory approval and other conditions, both facilities are expected to be in service by mid-2028.

Segno Solar and Votaw Solar

As discussed in the Form 10-K, in July 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 Segno Solar facility, a 170 MW solar facility to be located in Polk County, Texas, and the Votaw Solar facility, a 141 MW solar facility to be located in Hardin County, Texas. In July 2025, Entergy Texas filed, and the ALJs with the State Office of Administrative Hearings granted, an unopposed motion to abate this proceeding to give the parties to the proceeding additional time for settlement discussions. In August 2025, Entergy Texas filed, and the ALJs with the State Office of Administrative Hearings granted, an unopposed motion to withdraw the application. In September 2025, Entergy Texas and Entergy Louisiana entered into assignment and assumption agreements pursuant to which Entergy Texas assigned, and Entergy Louisiana assumed, certain interests in the Segno Solar and Votaw Solar facilities, and the associated assets were transferred in third quarter 2025 from Entergy Texas to Entergy Louisiana for approximately $41.4 million, subject to adjustment per the assignment and assumption agreements.

Southeast Texas Area Reliability Project (SETEX)

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. A hearing on the merits was held in May 2025. In July 2025 the ALJs with the State Office of Administrative Hearings issued a proposal for decision recommending the PUCT approve Entergy Texas’s application to construct SETEX and recommending the PUCT’s approval include selection of a specific route with an estimated cost of $1.4 billion. In October 2025 the PUCT issued a final order approving the requested amendment to Entergy Texas’s certificate of convenience and necessity to construct, own, and operate the new single-circuit 500 kV transmission line and associated stations and 138/230 kV facilities, and selecting the final route for the project, which has an estimated cost of $1.36 billion. Construction of the project is expected to be completed by the end of 2029.

Legend to Sandling 230kV Transmission Line

In April 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 230 kV transmission line. The transmission line is expected to be approximately 9 to 10 miles in length and the estimated cost of the project ranges from $87.4 million to $88.6 million, depending on the route ultimately approved by the PUCT. Also in April 2025 the PUCT referred the proceeding to the State Office of Administrative Hearings. In July 2025, Entergy Texas filed an unopposed settlement agreement resolving all issues in the proceeding and a joint motion, which the ALJ with the State Office of Administrative Hearings granted, on behalf of the parties to the proceeding to cancel the remaining procedural schedule, to admit evidence, and to remand the proceeding to the PUCT to consider the unopposed settlement agreement. In September 2025 the PUCT issued a notice of approval for the requested amendment to Entergy Texas’s certificate of convenience and necessity to construct, own, and operate the new single-circuit 230 kV transmission line, with a selected route at an estimated cost of $87.6 million. Subject to receipt of required regulatory approval and other conditions, construction of the project is expected to be completed by second quarter 2027.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

Cypress to Legend 500 kV Transmission Line

In May 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. The transmission line is expected to be approximately 40 to 49 miles in length and the estimated cost of the project ranges from $392.7 million to $436.2 million, depending on the route ultimately approved by the PUCT. In June 2025 the PUCT referred the proceeding to the State Office of Administrative Hearings and a hearing on the merits was held in August 2025. A PUCT decision is expected in fourth quarter 2025. Subject to receipt of required regulatory approval and other conditions, construction of the project is expected to be completed by the end of 2028.

Resilience and Grid Hardening

In June 2024, Entergy Texas filed an application with the PUCT requesting approval of Phase I of its Texas Future Ready Resiliency Plan, a set of measures to begin accelerating the resiliency of Entergy Texas’s transmission and distribution system. Phase I is comprised of projects totaling approximately $335.1 million, including approximately $137 million of projects to be funded by Entergy Texas and approximately $198 million of projects contingent upon Entergy Texas’s receipt of grant funds in that amount from the Texas Energy Fund. The projects in Phase I include distribution and transmission hardening and modernization projects and targeted vegetation management projects to mitigate the risk of wildfire. These projects are expected to be implemented within approximately three years of PUCT approval. In January 2025 the PUCT unanimously approved Phase I of Entergy Texas’s Texas Future Ready Resiliency Plan, including the approximately $137 million of projects to be funded by Entergy Texas and application of performance metrics consistent with the unopposed settlement. The PUCT clarified that, while not part of Entergy Texas’s Phase I plan, Entergy Texas is permitted to pursue the remaining $198 million of identified projects and Texas Energy Fund grant funding for those projects. In February 2025 the PUCT issued an order adopting a new rule establishing the procedures for application to the grant fund. In July 2025, Entergy Texas submitted an application for approximately $200 million in grant funding from the Texas Energy Fund to implement the resilience projects originally included in its Texas Future Ready Resiliency Plan. In October 2025 the PUCT voted to approve the $200 million grant request in full.

State and Local Rate Regulation and Fuel-Cost Recovery

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 amended rider was 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 then-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. In June 2025 the PUCT approved the DCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective on June 25, 2025.

In September 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 $94.7 million annually, or $16.9 million in incremental annual revenues beyond Entergy Texas’s currently effective DCRF rider based on its capital invested in distribution between January 1, 2025 and June 30, 2025. A PUCT decision is expected in fourth quarter 2025.

Entergy Texas, Inc. and Subsidiaries

Management’s Financial Discussion and Analysis

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.

In October 2025, Entergy Texas filed with the PUCT a request to amend its TCRF rider. The proposed rider is designed to collect from Entergy Texas’s retail customers approximately $30.3 million annually, or $20.6 million in incremental annual revenues beyond Entergy Texas’s currently effective TCRF rider based on its capital invested in transmission between July 1, 2024 and June 30, 2025 and changes in other transmission charges. Entergy Texas requested that the PUCT issue a decision in first quarter 2026 unless a hearing on the merits is requested.

Fuel and purchased power cost recovery

As discussed in the Form 10-K, in September 2024, Entergy Texas filed an application with the PUCT to reconcile its fuel and purchased power costs for the period from April 2022 through March 2024. During the reconciliation period, Entergy Texas incurred approximately $1.6 billion in eligible fuel and purchased power expenses to generate and purchase electricity to serve its customers, net of certain revenues credited to such expenses and other adjustments. Entergy Texas’s cumulative under-recovery balance for the reconciliation period was approximately $30 million, including interest, which Entergy Texas requested authority to carry over as part of the cumulative fuel balance for the subsequent reconciliation period beginning April 2024. In November 2024 the PUCT referred the proceeding to the State Office of Administrative Hearings. In March 2025, Texas Industrial Energy Consumers, an intervenor, filed testimony regarding the recovery of capacity costs for a certain purchased power agreement, arguing the capacity costs should be imputed and treated as non-reconcilable fuel expense, recovered in Entergy Texas’s base rates. In April 2025 the PUCT staff filed testimony and later in April 2025, Entergy Texas filed rebuttal testimony. In May 2025, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a request for a paper hearing and to cancel the oral hearing on the merits previously scheduled for later in May 2025. In June 2025, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a joint motion to abate the proceeding to give the parties to the proceeding additional time to finalize a settlement. In August 2025, Entergy Texas filed an unopposed settlement agreement that results in no disallowance and establishes a regulatory asset for the future recovery of imputed capacity costs and associated carrying costs related to a certain purchased power agreement, with recovery effective retroactive to June 1, 2024. In October 2025 the PUCT approved the unopposed settlement agreement.

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


ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$640,291	$596,998	$1,613,871	$1,560,566

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	142,264	154,340	263,392	365,997
Purchased power	114,286	93,327	371,784	276,383
Other operation and maintenance	90,278	80,377	248,551	241,513
Taxes other than income taxes	30,604	25,181	91,023	72,727
Depreciation and amortization	82,551	78,331	244,061	258,660
Other regulatory charges (credits) - net	5,353	4,850	11,197	(8,602)
TOTAL	465,336	436,406	1,230,008	1,206,678

OPERATING INCOME	174,955	160,592	383,863	353,888

OTHER INCOME
Allowance for equity funds used during construction	21,148	12,976	58,483	33,058
Interest and investment income	230	4,269	4,964	10,964
Miscellaneous - net	(2,426)	(2,756)	(6,057)	(8,254)
TOTAL	18,952	14,489	57,390	35,768

INTEREST EXPENSE
Interest expense	43,881	34,393	130,100	100,842
Allowance for borrowed funds used during construction	(9,010)	(5,051)	(24,897)	(12,872)
TOTAL	34,871	29,342	105,203	87,970

INCOME BEFORE INCOME TAXES	159,036	145,739	336,050	301,686

Income taxes	29,030	27,428	57,692	56,409

NET INCOME	130,006	118,311	278,358	245,277

Preferred dividend requirements	518	518	1,554	1,554

EARNINGS APPLICABLE TO COMMON STOCK	$129,488	$117,793	$276,804	$243,723

See Notes to Financial Statements.

(Page left blank intentionally)


ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$278,358	$245,277
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	244,061	258,660
Deferred income taxes, tax credits, and non-current taxes accrued	50,978	46,499
Changes in assets and liabilities:
Receivables	(99,373)	(70,355)
Fuel inventory	14,598	5,606
Accounts payable	12,604	35,245
Taxes accrued	(3,689)	(8,492)
Interest accrued	(9,372)	(15,023)
Deferred fuel costs	(48,081)	149,954
Other working capital accounts	(23,657)	(35,684)
Provisions for estimated losses	2,652	(1,268)
Other regulatory assets	86,203	20,987
Other regulatory liabilities	(20,878)	(31,304)
Pension and other postretirement funded status	(10,012)	(12,044)
Other assets and liabilities	(61,317)	(37,239)
Net cash flow provided by operating activities	413,075	550,819

INVESTING ACTIVITIES
Construction expenditures	(1,313,129)	(888,132)
Allowance for equity funds used during construction	58,483	33,058
Proceeds from sale of assets	41,435	1,325
Changes in money pool receivable - net	18,504	280,904
Changes in securitization account	(6,322)	(4,490)
Decrease in other investments	—	840

Net cash flow used in investing activities	(1,201,029)	(576,495)

FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	493,616	343,436
Retirement of long-term debt	(9,359)	(9,104)

Change in money pool payable - net	142,209	—


Preferred stock dividends paid	(1,554)	(1,554)
Other	(21,166)	24,555
Net cash flow provided by financing activities	603,746	357,333

Net increase (decrease) in cash and cash equivalents	(184,208)	331,657
Cash and cash equivalents at beginning of period	184,997	21,986
Cash and cash equivalents at end of period	$789	$353,643

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$136,763	$113,605
Income taxes - net	$2,077	$6,793
Noncash investing activities:
Accrued construction expenditures	$154,965	$196,788

See Notes to Financial Statements.


ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$789	$291
Temporary cash investments	—	184,706
Total cash and cash equivalents	789	184,997
Securitization recovery trust account	9,025	2,703
Accounts receivable:
Customer	157,436	84,842
Allowance for doubtful accounts	(6,182)	(1,304)
Associated companies	7,037	26,564
Other	57,340	43,773
Accrued unbilled revenues	93,173	74,060
Total accounts receivable	308,804	227,935

Fuel inventory - at average cost	31,372	45,970
Materials and supplies	170,940	157,241

Prepayments and other	44,322	34,803
TOTAL	565,252	653,649

OTHER PROPERTY AND INVESTMENTS
Investments in affiliates - at equity	70	107

Other	16,183	15,878
TOTAL	16,253	15,985

UTILITY PLANT
Electric	9,150,763	8,628,625
Construction work in progress	2,133,625	1,513,170
TOTAL UTILITY PLANT	11,284,388	10,141,795
Less - accumulated depreciation and amortization	2,715,675	2,548,961
UTILITY PLANT - NET	8,568,713	7,592,834

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets (includes securitization property of $220,062 as of September 30, 2025 and $234,112 as of December 31, 2024)	463,505	549,708
Other	178,675	157,904
TOTAL	642,180	707,612

TOTAL ASSETS	$9,792,398	$8,970,080

See Notes to Financial Statements.


ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$130,000	$—
Accounts payable:
Associated companies	210,027	65,335
Other	578,309	361,404
Customer deposits	41,411	40,782
Taxes accrued	72,784	76,474
Interest accrued	29,331	38,703
Deferred fuel costs	11,190	59,271
Other	19,516	20,836
TOTAL	1,092,568	662,805

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	941,515	868,849
Accumulated deferred investment tax credits	6,654	7,215
Regulatory liability for income taxes - net	74,503	93,766
Other regulatory liabilities	17,090	18,705
Asset retirement cost liabilities	14,895	17,688
Accumulated provisions	12,637	9,985
Long-term debt (includes securitization bonds of $230,536 as of September 30, 2025 and $239,622 as of December 31, 2024)	3,909,013	3,552,443
Other	105,507	397,412
TOTAL	5,081,814	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	2,329,689	2,052,885
Total common shareholder's equity	3,579,266	3,302,462
Preferred stock without sinking fund	38,750	38,750
TOTAL	3,618,016	3,341,212

TOTAL LIABILITIES AND EQUITY	$9,792,398	$8,970,080

See Notes to Financial Statements.


ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Nine Months Ended September 30, 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

Net income	—	—	—	90,222	90,222

Preferred stock dividends	—	—	—	(518)	(518)

Balance at June 30, 2024	38,750	49,452	1,200,125	1,956,265	3,244,592

Net income	—	—	—	118,311	118,311


Preferred stock dividends	—	—	—	(518)	(518)

Balance at September 30, 2024	$38,750	$49,452	$1,200,125	$2,074,058	$3,362,385

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

Net income	—	—	—	81,496	81,496

Preferred stock dividends	—	—	—	(518)	(518)

Balance at June 30, 2025	38,750	49,452	1,200,125	2,200,201	3,488,528

Net income	—	—	—	130,006	130,006
Preferred stock dividends	—	—	—	(518)	(518)

Balance at September 30, 2025	$38,750	$49,452	$1,200,125	$2,329,689	$3,618,016

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. See Note 1 to the financial statements herein for additional information regarding the amended Unit Power Sales Agreement. Payments under the Unit Power Sales Agreement are System Energy’s only source of operating revenues. See “Complaints Against System Energy - System Energy Settlement with the LPSC” in Note 2 to the financial statements herein for additional information regarding filings made with the FERC in May 2025 related to the Unit Power Sales Agreement. Also, 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

Third Quarter 2025 Compared to Third Quarter 2024

Net income decreased $4.8 million primarily due to a lower rate of return on rate base, including the effects of 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, and lower operating revenues resulting from changes in rate base. See Note 2 to the financial statements in the Form 10-K for discussion of the settlements with the LPSC.

Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Net income decreased $16.1 million primarily due to a lower rate of return on rate base, including the effects of 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 and the 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. The decrease was partially offset by higher operating revenues resulting from changes 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 21.1% for the third quarter 2025. The difference in the effective income tax rate for the third quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, offset by certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction.

The effective income tax rate was 20.6% for the nine months ended September 30, 2025. The difference in the effective income tax rate for the nine months ended September 30, 2025 versus the federal statutory rate of 21%

System Energy Resources, Inc.

Management’s Financial Discussion and Analysis

was primarily due to certain book and tax differences related to utility plant items and book and tax differences related to the allowance for equity funds used during construction, offset by the accrual for state income taxes.

The effective income tax rates were 24% for the third quarter 2024 and 22.5% for the nine months ended September 30, 2024. The differences in the effective income tax rates for the third quarter 2024 and the nine months ended September 30, 2024 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction.

Income Tax Legislation and Regulation

Liquidity and Capital Resources

Cash Flow

Cash flows for the nine months ended September 30, 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	327,440	113,280
Investing activities	(146,126)	(241,229)
Financing activities	(82,435)	206,084
Net increase in cash and cash equivalents	98,879	78,135

Cash and cash equivalents at end of period	$127,787	$78,195

Operating Activities

Net cash flow provided by operating activities increased $214.2 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:

the receipt of $98.7 million in payments related to the sale of nuclear production tax credits in third quarter 2025. See Note 3 to the financial statements in the Form 10-K and see Note 10 to the financial statements herein for discussion of the nuclear production tax credits;
the refund of $92 million made in May 2024 to Entergy Arkansas as a result of the settlement with the APSC. See Note 2 to the financial statements in the Form 10-K for discussion of the settlement with the APSC; and
a decrease of $18 million in spending on nuclear refueling outage costs in 2025 as compared to 2024.

Investing Activities

Net cash flow used in investing activities decreased $95.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to a decrease in cash used of $103.7 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

System Energy Resources, Inc.

Management’s Financial Discussion and Analysis

nuclear fuel cycle and a decrease of $26.7 million in nuclear construction expenditures primarily due to higher spending in 2024 on Grand Gulf outage projects and upgrades. The decrease was partially offset by money pool activity.

Increases in System Energy’s receivable from the money pool are a use of cash flow, and System Energy’s receivable from the money pool increased $30.3 million for the nine months ended September 30, 2025 compared to increasing by $8.1 million for the nine months ended September 30, 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 $82.4 million of cash for the nine months ended September 30, 2025 compared to providing $206.1 million of cash for the nine months ended September 30, 2024 primarily due to the following activity:

the repayment, prior to maturity, of $200 million of 2.14% Series mortgage bonds in June 2025;
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 $33.1 million in 2025 compared to net long-term borrowings of $68.5 million in 2024 on the nuclear fuel company variable interest entity’s credit facility;
$80 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; and
the issuance of $240 million of 5.30% Series mortgage bonds in May 2025.

Capital Structure

System Energy’s debt to capital ratio is shown in the following table.


	September 30, 2025		December 31, 2024
Debt to capital	53.2	%	52.9	%
Effect of subtracting cash	(3.1	%)	(0.7	%)
Net debt to net capital (non-GAAP)	50.1	%	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.

System Energy Resources, Inc.

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 System Energy’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.

System Energy is developing its capital investment plan for 2026 through 2029 and currently anticipates making $560 million in capital investments during that period, including $155 million in 2026, $115 million in 2027, $135 million in 2028, and $155 million in 2029. The preliminary estimate includes amounts associated with Grand Gulf investments and initiatives. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental actions, including the trade-related governmental actions discussed below, environmental compliance, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies.

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 operation 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 is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and trade-related governmental actions, such as tariffs and other measures, on its current and planned capital projects.

System Energy’s receivables from or (payables to) the money pool were as follows:


September 30, 2025	December 31, 2024	September 30, 2024	December 31, 2023
(In Thousands)
$33,179	$2,851	$8,119	($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 September 30, 2025, $39.6 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.

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.

System Energy Resources, Inc.

Management’s Financial Discussion and Analysis

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 are updates 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. In April 2025 the FERC accepted System Energy’s tariff compliance filing.

System Energy Settlement with the LPSC

As discussed in the Form 10-K, in 2024, System Energy reached a settlement with the LPSC to globally resolve all of the LPSC’s actual and potential claims in multiple docketed proceedings pending before the FERC (including all docketed proceedings resolved by the MPSC, the APSC, and the City Council settlements) and associated with System Energy’s past implementation of the Unit Power Sales Agreement. In compliance with the settlement, in May 2025, System Energy, Entergy Louisiana, and Entergy Mississippi submitted the following filings with the FERC: (1) a Federal Power Act Section 203 application seeking approval for the permanent divestiture by Entergy Louisiana to Entergy Mississippi of its rights to capacity and energy from Grand Gulf; and (2) a Federal Power Act Section 205 application seeking approval to modify the entitlement percentages of the remaining purchasers under the Unit Power Sales Agreement in connection with the foregoing divestiture. In July 2025 the FERC issued an order accepting the Federal Power Act Section 205 application to remove Entergy Louisiana as a party to the Unit Power Sales Agreement. As a result of the order, the Unit Power Sales Agreement entitlement percentages of the remaining purchasers were permanently modified to exclude Entergy Louisiana effective October 2025. The FERC also issued an order dismissing the Federal Power Act Section 203 application based on lack of jurisdiction. See Note 1 to the financial statements herein for additional information regarding the amended Unit Power Sales Agreement.

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.

System Energy Resources, Inc.

Management’s Financial Discussion and Analysis

Critical Accounting Estimates

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in 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


SYSTEM ENERGY RESOURCES, INC.
INCOME STATEMENTS
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited)

	Three Months Ended		Nine Months Ended
	2025	2024	2025	2024
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$148,071	$147,339	$433,740	$445,893

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	16,748	17,427	47,686	47,664
Nuclear refueling outage expenses	4,194	4,180	12,419	14,977
Other operation and maintenance	48,454	47,868	138,949	145,037
Decommissioning	11,369	10,923	33,770	32,445
Taxes other than income taxes	6,855	6,802	20,214	20,903
Depreciation and amortization	31,125	30,518	92,952	90,639
Other regulatory charges (credits) - net	4,427	(8,347)	2,047	13,868
TOTAL	123,172	109,371	348,037	365,533

OPERATING INCOME	24,899	37,968	85,703	80,360

OTHER INCOME
Allowance for equity funds used during construction	2,136	1,647	5,620	5,532
Interest and investment income	17,404	5,288	40,515	52,228
Miscellaneous - net	(537)	360	(244)	432
TOTAL	19,003	7,295	45,891	58,192

INTEREST EXPENSE
Interest expense	17,997	11,652	51,289	34,895
Allowance for borrowed funds used during construction	(1,045)	(685)	(2,754)	(2,138)
TOTAL	16,952	10,967	48,535	32,757

INCOME BEFORE INCOME TAXES	26,950	34,296	83,059	105,795

Income taxes	5,679	8,219	17,074	23,752

NET INCOME	$21,271	$26,077	$65,985	$82,043

See Notes to Financial Statements.

(Page left blank intentionally)


SYSTEM ENERGY RESOURCES, INC.
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2025 and 2024
(Unaudited)
	2025	2024
	(In Thousands)
OPERATING ACTIVITIES
Net income	$65,985	$82,043
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	168,382	162,837
Deferred income taxes, tax credits, and non-current taxes accrued	116,094	38,301
Changes in assets and liabilities:
Receivables	(4,282)	7,714
Accounts payable	(7,745)	70,282
Taxes accrued	(6,387)	(16,404)
Interest accrued	7,533	827
Other working capital accounts	(205)	(21,934)
Other regulatory assets	(4,319)	22,117
Other regulatory liabilities	131,917	(45,306)
Pension and other postretirement funded status	(9,882)	(10,660)
Other assets and liabilities	(129,651)	(176,537)
Net cash flow provided by operating activities	327,440	113,280

INVESTING ACTIVITIES
Construction expenditures	(90,616)	(117,597)
Allowance for equity funds used during construction	5,620	5,532
Nuclear fuel purchases	(46,290)	(122,946)
Proceeds from sale of nuclear fuel	43,555	16,465
Decrease in other investments	—	23
Proceeds from nuclear decommissioning trust fund sales	504,710	682,377
Investment in nuclear decommissioning trust funds	(532,777)	(696,964)
Changes in money pool receivable - net	(30,328)	(8,119)

Net cash flow used in investing activities	(146,126)	(241,229)

FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	655,455	812,087
Retirement of long-term debt	(657,890)	(743,757)
Capital contribution from parent	—	150,000

Change in money pool payable - net	—	(12,246)
Common stock dividends and distributions paid	(80,000)	—

Net cash flow provided by (used in) financing activities	(82,435)	206,084

Net increase in cash and cash equivalents	98,879	78,135
Cash and cash equivalents at beginning of period	28,908	60
Cash and cash equivalents at end of period	$127,787	$78,195

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized	$43,179	$36,497
Income taxes - net (includes production tax credit sale proceeds of $98,722 in 2025 and $— in 2024)	($98,722)	($2,326)
Noncash investing activities:
Accrued construction expenditures	$6,716	$15,240

See Notes to Financial Statements.


SYSTEM ENERGY RESOURCES, INC.
BALANCE SHEETS
ASSETS
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$457	$448
Temporary cash investments	127,330	28,460
Total cash and cash equivalents	127,787	28,908
Accounts receivable:
Associated companies	82,506	48,134
Other	5,663	5,425
Total accounts receivable	88,169	53,559

Materials and supplies	155,500	163,814
Deferred nuclear refueling outage costs	11,602	19,884


Prepayments and other	6,547	5,768
TOTAL	389,605	271,933

OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds	1,704,226	1,529,059
TOTAL	1,704,226	1,529,059

UTILITY PLANT
Electric	5,680,600	5,668,253

Construction work in progress	156,903	85,127
Nuclear fuel	180,277	220,044
TOTAL UTILITY PLANT	6,017,780	5,973,424
Less - accumulated depreciation and amortization	3,664,527	3,578,709
UTILITY PLANT - NET	2,353,253	2,394,715

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:

Other regulatory assets	430,813	426,494

Other	25,107	20,273
TOTAL	455,920	446,767

TOTAL ASSETS	$4,903,004	$4,642,474

See Notes to Financial Statements.


SYSTEM ENERGY RESOURCES, INC.
BALANCE SHEETS
LIABILITIES AND EQUITY
September 30, 2025 and December 31, 2024
(Unaudited)
	2025	2024
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$140	$200,090

Accounts payable:
Associated companies	17,832	18,477
Other	25,993	45,017
Taxes accrued	9,465	15,852

Interest accrued	20,875	13,342


Other	4,475	4,473
TOTAL	78,780	297,251

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	585,667	451,830
Accumulated deferred investment tax credits	41,874	42,984
Regulatory liability for income taxes - net	100,919	105,467
Other regulatory liabilities	883,655	747,190
Decommissioning	1,161,483	1,127,712

Long-term debt	1,090,622	889,646
Other	1,980	8,355
TOTAL	3,866,200	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	908,944	958,944
Retained earnings	49,080	13,095
TOTAL	958,024	972,039

TOTAL LIABILITIES AND EQUITY	$4,903,004	$4,642,474

See Notes to Financial Statements.


SYSTEM ENERGY RESOURCES, INC.
STATEMENTS OF CHANGES IN COMMON EQUITY
For the Nine Months Ended September 30, 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

Net income	—	24,848	24,848

Balance at June 30, 2024	1,066,850	27,655	1,094,505

Net income	—	26,077	26,077

Balance at September 30, 2024	$1,066,850	$53,732	$1,120,582


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

Net income	—	21,325	21,325
Common stock dividends and distributions	(30,000)	(10,000)	(40,000)
Balance at June 30, 2025	908,944	32,809	941,753

Net income	—	21,271	21,271
Common stock dividends and distributions	—	(5,000)	(5,000)
Balance at September 30, 2025	$908,944	$49,080	$958,024

See Notes to Financial Statements.

ENTERGY CORPORATION AND SUBSIDIARIES

PART II. OTHER INFORMATION

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