[10-Q] ENTERGY TEXAS, INC. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
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__________________________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) | |||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2025
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| For the transition period from ____________ to ____________ | |||||
Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | Commission File Number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No. | |||||||||||
(a Telephone ( | (a Telephone ( | |||||||||||||
(a Telephone ( | (a Telephone ( | |||||||||||||
(a Telephone ( | (an Telephone ( | |||||||||||||
(a Telephone ( | ||||||||||||||
__________________________________________________________________________________________
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Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||
| Entergy Corporation | |||||||||||
| NYSE Texas | |||||||||||
| Entergy Arkansas, LLC | |||||||||||
| Entergy Louisiana, LLC | |||||||||||
| Entergy Mississippi, LLC | |||||||||||
| Entergy New Orleans, LLC | |||||||||||
| Entergy Texas, Inc. | |||||||||||
Securities registered pursuant to Section 12(g) of the Act:
| Registrant | Title of Class | ||||
| Entergy Texas, Inc. | |||||
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Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Accelerated filer | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||
| Entergy Corporation | ü | ||||||||||||||||||||||||||||
| Entergy Arkansas, LLC | ü | ||||||||||||||||||||||||||||
| Entergy Louisiana, LLC | ü | ||||||||||||||||||||||||||||
| Entergy Mississippi, LLC | ü | ||||||||||||||||||||||||||||
| Entergy New Orleans, LLC | ü | ||||||||||||||||||||||||||||
| Entergy Texas, Inc. | ü | ||||||||||||||||||||||||||||
| System Energy Resources, Inc. | ü | ||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
| Common Stock Outstanding | Outstanding at September 30, 2025 | |||||||
| Entergy Corporation | ($0.01 par value) | |||||||
Entergy Corporation, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. separately file this combined Quarterly Report on Form 10-Q. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company makes representations only as to itself and makes no other representations whatsoever as to any other company. This combined Quarterly Report on Form 10-Q supplements and updates the Annual Report on Form 10-K for the calendar year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025, filed by the individual registrants with the SEC, and should be read in conjunction therewith.
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TABLE OF CONTENTS
| Page Number | |||||
Forward-looking Information | iii | ||||
Definitions | vii | ||||
| Part I. Financial Information | |||||
| Entergy Corporation and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 1 | ||||
Consolidated Income Statements | 26 | ||||
Consolidated Statements of Comprehensive Income | 27 | ||||
Consolidated Statements of Cash Flows | 28 | ||||
Consolidated Balance Sheets | 30 | ||||
Consolidated Statements of Changes in Equity | 32 | ||||
| Notes to Financial Statements | |||||
Note 1. Commitments and Contingencies | 34 | ||||
Note 2. Rate and Regulatory Matters | 36 | ||||
Note 3. Equity | 46 | ||||
Note 4. Revolving Credit Facilities, Lines of Credit, Short-term Borrowings, and Long-term Debt | 52 | ||||
Note 5. Stock-based Compensation | 57 | ||||
Note 6. Retirement and Other Postretirement Benefits | 58 | ||||
Note 7. Business Segment Information | 66 | ||||
Note 8. Risk Management and Fair Values | 70 | ||||
Note 9. Decommissioning Trust Funds | 83 | ||||
Note 10. Income Taxes | 89 | ||||
Note 11. Variable Interest Entities | 90 | ||||
Note 12. Revenue | 92 | ||||
Note 13. Held for Sale and Dispositions | 95 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 98 | ||||
Item 4. Controls and Procedures | 98 | ||||
| Entergy Arkansas, LLC and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 99 | ||||
Consolidated Income Statements | 112 | ||||
Consolidated Statements of Cash Flows | 113 | ||||
Consolidated Balance Sheets | 114 | ||||
Consolidated Statements of Changes in Equity | 116 | ||||
| Entergy Louisiana, LLC and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 117 | ||||
Consolidated Income Statements | 134 | ||||
Consolidated Statements of Comprehensive Income | 135 | ||||
Consolidated Statements of Cash Flows | 137 | ||||
Consolidated Balance Sheets | 138 | ||||
Consolidated Statements of Changes in Equity | 140 | ||||
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| Page Number | |||||
| Entergy Mississippi, LLC and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 141 | ||||
Consolidated Income Statements | 151 | ||||
Consolidated Statements of Cash Flows | 153 | ||||
Consolidated Balance Sheets | 154 | ||||
Consolidated Statements of Changes in Equity | 156 | ||||
| Entergy New Orleans, LLC and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 157 | ||||
Consolidated Income Statements | 166 | ||||
Consolidated Statements of Cash Flows | 167 | ||||
Consolidated Balance Sheets | 168 | ||||
Consolidated Statements of Changes in Member’s Equity | 170 | ||||
| Entergy Texas, Inc. and Subsidiaries | |||||
Management’s Financial Discussion and Analysis | 171 | ||||
Consolidated Income Statements | 183 | ||||
Consolidated Statements of Cash Flows | 185 | ||||
Consolidated Balance Sheets | 186 | ||||
Consolidated Statements of Changes in Equity | 188 | ||||
| System Energy Resources, Inc. | |||||
Management’s Financial Discussion and Analysis | 189 | ||||
Income Statements | 195 | ||||
Statements of Cash Flows | 197 | ||||
Balance Sheets | 198 | ||||
Statements of Changes in Common Equity | 200 | ||||
| Part II. Other Information | |||||
Item 1. Legal Proceedings | 201 | ||||
Item 1A. Risk Factors | 201 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 201 | ||||
Item 5. Other Information | 202 | ||||
Item 6. Exhibits | 206 | ||||
Signature | 208 | ||||
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FORWARD-LOOKING INFORMATION
In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, projections, strategies, and future events or performance. Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” “goal,” “commitment,” “expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements. Although each of these registrants believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-looking statement is based on information current as of the date of this combined report and speaks only as of the date on which such statement is made. Except to the extent required by the federal securities laws, each registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent filings with the SEC):
•resolution of pending and future rate cases and related litigation, formula rate proceedings and related negotiations, including various performance-based rate discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs, as well as delays in cost recovery resulting from these proceedings;
•regulatory and operating challenges and uncertainties and economic risks associated with the Utility operating companies’ participation in MISO, including the benefits of continued MISO participation, the effect of current or projected MISO market rules, market design and market and system conditions in the MISO markets, the allocation of MISO system transmission upgrade costs, delays in developing or interconnecting new generation or other resources or other adverse effects arising from the volume of requests in the MISO transmission interconnection queue, which delays or other adverse effects may be exacerbated by significant current and expected load growth, the MISO-wide base rate of return on equity allowed or any MISO-related charges and credits required by the FERC, and the effect of planning decisions that MISO makes with respect to future transmission investments by the Utility operating companies;
•changes in utility regulation, including, with respect to retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, including those capital investments associated with unrealized customer growth expectations (including data center customers), and the application of more stringent return on equity criteria, transmission reliability requirements, or market power criteria by the FERC or the U.S. Department of Justice;
•changes in the regulation or regulatory oversight of Entergy’s owned or operated nuclear generating facilities, nuclear materials and fuel, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and fuel;
•resolution of pending or future applications, as well as regulatory proceedings and litigation, relating to generation, transmission, or other facilities (including license modifications or other authorizations for nuclear generating facilities) and the effect of public and political opposition on these applications, regulatory proceedings, and litigation, including without limitation opposition to the employment of technologies to capture, transport, and store carbon dioxide from gas plants, land use opposition to new solar facilities and transmission lines, and land use and other environmental opposition to wind turbines;
•the performance of and deliverability of power from Entergy’s generation resources, including the capacity factors at Entergy’s nuclear generating facilities;
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FORWARD-LOOKING INFORMATION (Continued)
•increases in costs and capital expenditures that could result from changing regulatory requirements, changing governmental policies, priorities, programs, and actions, including as a result of tariffs, shifts in international trade policies, and other measures, changing or volatile economic conditions, disruptions to pre-existing supply chains and vendor relations, and emerging operating and industry issues, such as anticipated growth in demand from large data centers, and the risks related to recovery of these costs and capital expenditures from Entergy’s customers (especially in an increasing cost environment);
•the commitment of substantial human and capital resources required for the safe and reliable operation and maintenance of Entergy’s utility system, including its nuclear generating facilities;
•Entergy’s ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities;
•the prices and availability of fuel and power Entergy must purchase for its Utility customers, particularly given the recent and ongoing significant growth in liquified natural gas exports and the associated significantly increased demand for natural gas and resulting fluctuation in natural gas prices, increasing challenges with respect to natural gas transportation arrangements, and Entergy’s ability to meet credit support requirements for fuel and power supply contracts;
•volatility and changes in markets for electricity, natural gas, uranium, emissions allowances, and other energy-related commodities, including as a result of trade-related governmental actions, such as tariffs and other measures, and the effect of those changes on Entergy and its customers;
•changes in environmental laws and regulations, agency positions, or associated litigation, including requirements for reduced emissions of sulfur dioxide, nitrogen oxide, greenhouse gases, mercury, particulate matter and other regulated air emissions, heat and other regulated discharges to water, waste management and disposal, remediation of contaminated sites, wetlands protection and permitting, and reporting, and changes in costs of compliance with environmental laws and regulations, as well as changes to federal, state, or local laws and regulations, including the One Big Beautiful Bill Act, and governmental policies incentivizing the development or utilization of alternative sources of generation;
•changes in laws and regulations, agency positions, or associated litigation related to protected species and associated critical habitat designations;
•the effects of changes in federal, state, or local laws and regulations, such as the One Big Beautiful Bill Act, and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, trade/tariff, domestic purchase requirements, or energy policies and related laws, regulations, and other governmental actions, including as a result of prolonged litigation over proposed legislation or regulatory actions;
•the effects of full or partial shutdowns of the federal government or delays in obtaining government or regulatory actions or decisions;
•uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal and the level of spent fuel and nuclear waste disposal fees charged by the U.S. government or other providers related to such sites;
•variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, floods, wildfires, or other weather events and the recovery of costs associated with restoration, including the ability to access funded storm reserves, federal and local cost recovery mechanisms, securitization, and insurance, as well as any related unplanned outages;
•effects of climate change, including the potential for increases in the frequency or severity of extreme weather events, such as hurricanes, heat waves, floods, drought or wildfires, and rising sea levels or coastal land and wetland loss, and Entergy’s ability to effectively prepare for such effects and events, including through accelerated resilience plans and projects, and any challenges in execution thereof and/or in obtaining any necessary regulatory approvals for appropriate scope and timing of such plans and projects now and in the future;
•the risk that as a result of Entergy’s membership in Nuclear Electric Insurance Limited (NEIL), an incident at a NEIL member-insured nuclear generation facility could lead to a significant retrospective assessment;
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FORWARD-LOOKING INFORMATION (Continued)
•the risk that an incident at a nuclear generation facility participating in a secondary financial protection system could lead to a significant retrospective insurance premium;
•changes in the quality and availability of water supplies and the related regulation of water use and diversion;
•Entergy’s ability to manage and execute on its capital projects, including any capital projects to serve the growing demand for electricity driven in part by the anticipated development of large data centers, and to complete such capital projects timely and within budget, to obtain the anticipated performance or other benefits of such capital projects, and to manage its capital and operation and maintenance costs;
•the effects of supply chain disruptions, including those driven by geopolitical developments or trade-related governmental actions, including tariffs and other measures, on Entergy’s ability to complete its capital projects in a timely and cost-effective manner;
•Entergy’s ability to purchase and sell assets at attractive prices and on other attractive terms;
•the economic climate, and particularly economic conditions in the Utility service area and events and circumstances that could influence economic conditions in those areas, including power prices and inflation, and the risk that anticipated load growth may not materialize;
•changes to or the repeal of federal income tax laws, regulations, and interpretive guidance and policies, including the One Big Beautiful Bill Act and the continuing impact of the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017, and any related intended or unintended consequences on financial results and future cash flows;
•the effects of Entergy’s strategies to reduce tax payments;
•the effect of interest rate volatility and other changes in the financial markets, federal law, including the One Big Beautiful Bill Act, and regulatory requirements for the issuance of securities, particularly as they affect access to and cost of capital and Entergy’s ability to refinance existing securities and fund investments and acquisitions;
•actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies’ ratings criteria;
•changes in inflation and interest rates and the impacts of inflation or a recession on Entergy’s customers;
•the effects of government investigations, proceedings, or audits;
•changes in technology, including (i) Entergy’s ability to effectively assess, acquire, implement, and manage new or emerging technologies, including its ability to maintain and protect personally identifiable information while doing so; (ii) the emergence of artificial intelligence (including machine learning), which may present increased electricity demand, as well as ethical, security, legal, operational, or regulatory challenges; (iii) advances in artificial intelligence (including machine learning) technologies that could reduce the expected electricity demand for these technologies and data centers; (iv) the impact of changes relating to new, developing, or alternative sources of generation such as distributed energy and energy storage, renewable energy, energy efficiency, demand side management, and other measures that reduce load and government policies impacting development or utilization of the foregoing; and (v) competition from other companies offering products and services to Entergy’s customers based on new or emerging technologies or alternative sources of generation;
•Entergy’s ability to effectively formulate and implement plans to increase its carbon-free energy capacity and to reduce its carbon emission rate and aggregate carbon emissions, including its commitment to achieve net-zero carbon emissions by 2050 and the related increasing investment in renewable power generation sources and carbon capture and storage, the potential impact on its business and financial condition of attempting to achieve such objectives, and Entergy’s ability to achieve its climate goals and commitments due to expected load growth;
•the effects, including increased security costs, of threatened or actual terrorism, cyber attacks or data security breaches, physical attacks on or other interference with facilities or infrastructure, natural or man-made electromagnetic pulses that affect transmission or generation infrastructure, accidents, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion;
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FORWARD-LOOKING INFORMATION (Concluded)
•impacts of perceived or actual cybersecurity or data security threats or events on Entergy and its subsidiaries, its vendors, suppliers or other third parties interconnected through the grid, which could, among other things, result in disruptions to its operations, including but not limited to, the loss of operational control, temporary or extended outages, or loss of data, including but not limited to, sensitive customer, employee, financial or operations data;
•the effects of a catastrophe, pandemic (or other health-related event), or a global or geopolitical event such as escalating trade tensions between the United States and China or the military activities between Russia and Ukraine, or in the Middle East, including resultant economic and societal disruptions; fuel procurement disruptions; volatility in the capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available bank credit facilities); reduced demand for electricity, particularly from commercial and industrial customers; increased or unrecoverable costs; supply chain, vendor, and contractor disruptions, including as a result of trade-related sanctions; delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed outages; impacts to Entergy’s workforce availability, health, or safety; increased cybersecurity risks as a result of many employees telecommuting and/or working partially remotely; increased late or uncollectible customer payments; regulatory delays; executive orders affecting, or increased regulation of, Entergy’s business; changes in credit ratings or outlooks as a result of any of the foregoing; or other adverse impacts on Entergy’s ability to execute on its business strategies and initiatives or, more generally, on Entergy’s results of operations, financial condition, and liquidity;
•Entergy’s ability to attract and retain talented management, directors, and employees with specialized skills, institutional knowledge, capacity, and abilities, including the ability to effectively execute on Entergy’s growth strategy;
•Entergy’s ability to attract, retain, and manage an appropriately qualified and sufficiently staffed workforce;
•changes in accounting standards and corporate governance best practices;
•declines in the market prices of marketable securities and changes in interest rates and resulting pension and retiree welfare plan funding requirements and the effects on benefits costs for Entergy’s defined benefit pension and other postretirement benefits plans;
•future wage and employee benefits costs, including changes in discount rates and returns on benefit plan assets;
•changes in decommissioning trust fund values or earnings or in the timing of, requirements for, or cost to decommission Entergy’s nuclear plant sites and the implementation of decommissioning of such sites following shutdown;
•the effectiveness of Entergy’s risk management policies and procedures and the ability and willingness of its counterparties, including lending, hedging, credit support, and major customer counterparties, to satisfy their financial and performance commitments;
•reductions in the demand for electricity to power hyperscale data centers and the potential for stranded assets;
•concentration of business with a small number of customers in an industry based on emerging technologies, including artificial intelligence and machine learning; and
•Entergy and its subsidiaries’ ability to successfully execute on their business strategies, including their ability to complete strategic transactions that they may undertake, and their ability to meet the rapidly growing demand for electricity, including from hyperscale data center and other large customers, and to manage the impacts of growth in demand for electricity on customers and Entergy’s business.
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DEFINITIONS
Certain abbreviations or acronyms used in the text and notes are defined below:
| Abbreviation or Acronym | Term | ||||
AFUDC | Allowance for Funds Used During Construction | ||||
| ALJ | Administrative Law Judge | ||||
| ANO 1 and 2 | Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas | ||||
| APSC | Arkansas Public Service Commission | ||||
| Board | Board of Directors of Entergy Corporation | ||||
| Cajun | Cajun Electric Power Cooperative, Inc. | ||||
| capacity factor | Actual plant output divided by maximum potential plant output for the period | ||||
| City Council | Council of the City of New Orleans, Louisiana | ||||
| COVID-19 | The novel coronavirus disease declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention in March 2020 | ||||
| D.C. Circuit | U.S. Court of Appeals for the District of Columbia Circuit | ||||
| DOE | United States Department of Energy | ||||
| Entergy | Entergy Corporation and its direct and indirect subsidiaries | ||||
| Entergy Corporation | Entergy Corporation, a Delaware corporation | ||||
| Entergy Gulf States, Inc. | Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas | ||||
| Entergy Gulf States Louisiana | Entergy Gulf States Louisiana, L.L.C., a Louisiana limited liability company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes. The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires. Effective October 1, 2015, the business of Entergy Gulf States Louisiana was combined with Entergy Louisiana. | ||||
| Entergy Louisiana | Entergy Louisiana, LLC, a Texas limited liability company formally created as part of the combination of Entergy Gulf States Louisiana and the company formerly known as Entergy Louisiana, LLC (Old Entergy Louisiana) into a single public utility company and the successor to Old Entergy Louisiana for financial reporting purposes | ||||
| Entergy Texas | Entergy Texas, Inc., a Texas corporation formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires. | ||||
| Entergy Wholesale Commodities | Prior to January 1, 2023, one of Entergy’s reportable business segments consisting of non-utility business activities primarily comprised of the ownership, operation, and decommissioning of nuclear power plants, the ownership of interests in non-nuclear power plants, and the sale of the electric power produced by its operating power plants to wholesale customers | ||||
| EPA | United States Environmental Protection Agency | ||||
| FERC | Federal Energy Regulatory Commission | ||||
| Form 10-K | Annual Report on Form 10-K for the calendar year ended December 31, 2024, filed with the SEC by Entergy Corporation and its Registrant Subsidiaries | ||||
GAAP | Generally Accepted Accounting Principles | ||||
Grand Gulf | Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy | ||||
GWh | Gigawatt-hour(s), which equals one million kilowatt-hours | ||||
| Independence | Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power, LLC | ||||
IRS | Internal Revenue Service | ||||
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DEFINITIONS (Continued)
| Abbreviation or Acronym | Term | ||||
| ISO | Independent System Operator | ||||
| kV | Kilovolt | ||||
kW | Kilowatt, which equals one thousand watts | ||||
kWh | Kilowatt-hour(s) | ||||
LPSC | Louisiana Public Service Commission | ||||
LURC | Louisiana Utilities Restoration Corporation | ||||
MISO | Midcontinent Independent System Operator, Inc., a regional transmission organization | ||||
MMBtu | One million British Thermal Units | ||||
MPSC | Mississippi Public Service Commission | ||||
MW | Megawatt(s), which equals one thousand kilowatts | ||||
MWh | Megawatt-hour(s) | ||||
Nelson Unit 6 | Unit No. 6 (coal) of the Nelson Steam Electric Generating Station, 70% of which is co-owned by Entergy Louisiana (57.5%) and Entergy Texas (42.5%) and 10.9% of which is owned by EAM Nelson Holding, LLC | ||||
Net debt to net capital ratio | Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, which is a non-GAAP measure | ||||
NRC | Nuclear Regulatory Commission | ||||
Palisades | Palisades Nuclear Plant (nuclear), previously owned as part of Entergy’s non-utility business, which ceased power production in May 2022 and was sold in June 2022 | ||||
Parent & Other | The portions of Entergy not included in the Utility segment, primarily consisting of the activities of the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business which owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers and also provides decommissioning services to nuclear power plants owned by non-affiliated entities in the United States | ||||
PPA | Purchased power agreement or power purchase agreement | ||||
PUCT | Public Utility Commission of Texas | ||||
Registrant Subsidiaries | Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. | ||||
River Bend | River Bend Station (nuclear), owned by Entergy Louisiana | ||||
SEC | Securities and Exchange Commission | ||||
System Agreement | Agreement, effective January 1, 1983, as modified, among the Utility operating companies relating to the sharing of generating capacity and other power resources. The agreement terminated effective August 2016. | ||||
System Energy | System Energy Resources, Inc. | ||||
Unit Power Sales Agreement | Agreement, dated as of June 10, 1982, as amended and approved by the FERC, among Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy’s share of Grand Gulf | ||||
| Utility | Entergy’s reportable segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas distribution in portions of Louisiana | ||||
| Utility operating companies | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas | ||||
Waterford 3 | Unit No. 3 (nuclear) of the Waterford Steam Electric Station, owned by Entergy Louisiana | ||||
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DEFINITIONS (Concluded)
| Abbreviation or Acronym | Term | ||||
weather-adjusted usage | Electric usage excluding the effects of deviations from normal weather | ||||
White Bluff | White Bluff Steam Electric Generating Station, 57% owned by Entergy Arkansas | ||||
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ENTERGY CORPORATION AND SUBSIDIARIES
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS
Entergy operates primarily through a single reportable segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and included operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. 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 the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. See Note 7 to the financial statements herein for discussion of and financial information regarding Entergy’s reportable segment.
Results of Operations
Third Quarter 2025 Compared to Third Quarter 2024
Following are income statement variances for Utility, Parent & Other, and Entergy comparing the third quarter 2025 to the third quarter 2024 showing how much the line item increased or (decreased) in comparison to the prior period.
Utility | Parent & Other (a) | Entergy | ||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| 2024 Net Income (Loss) Attributable to Entergy Corporation | $786,547 | ($141,607) | $644,940 | |||||||||||||||||
| Operating revenues | 427,194 | (4,275) | 422,919 | |||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 179,964 | (5,148) | 174,816 | |||||||||||||||||
| Purchased power | 60,485 | (3,817) | 56,668 | |||||||||||||||||
| Other regulatory charges (credits) - net | 79,096 | — | 79,096 | |||||||||||||||||
| Other operation and maintenance | 49,804 | (1,525) | 48,279 | |||||||||||||||||
Asset write-offs, impairments, and related charges | 12,795 | — | 12,795 | |||||||||||||||||
| Taxes other than income taxes | 40,124 | 120 | 40,244 | |||||||||||||||||
| Depreciation and amortization | 26,864 | 40 | 26,904 | |||||||||||||||||
| Other income (deductions) | 66,000 | 13,058 | 79,058 | |||||||||||||||||
| Interest expense | 39,597 | (9,862) | 29,735 | |||||||||||||||||
| Other expenses | (9,100) | 38 | (9,062) | |||||||||||||||||
| Income taxes | (14,160) | 3,992 | (10,168) | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 3,810 | — | 3,810 | |||||||||||||||||
| 2025 Net Income (Loss) Attributable to Entergy Corporation | $810,462 | ($116,662) | $693,800 | |||||||||||||||||
(a)Parent & Other includes eliminations, which are primarily intersegment activity.
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Management’s Financial Discussion and Analysis
Operating Revenues
Utility
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 | $3,370 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | 263 | ||||
| Retail one-time bill credit | 92 | ||||
| Volume/weather | 75 | ||||
| Purchased power agreement termination proceeds | 15 | ||||
| Retail electric price | 14 | ||||
| Effect of sale of natural gas distribution businesses | (32) | ||||
| 2025 operating revenues | $3,797 | ||||
The Utility operating companies’ results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.
The 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 previously recorded a regulatory liability at the time of the global black box settlement reached between System Energy and the MPSC in June 2022. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlements with the APSC and the MPSC. See Note 2 to the financial statements herein and in the Form 10-K for discussion of Entergy Arkansas’s Grand Gulf credit rider.
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, chlor-alkali, and industrial gases industries. The increase in residential usage is primarily due to an increase in customers.
The purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized by Entergy Mississippi in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.
The retail electric price variance is primarily due to:
•an increase in Entergy Arkansas’s formula rate plan rates effective January 2025;
•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;
•an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2025; and
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•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, each at Entergy Texas.
See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.
The effect of sale of natural gas distribution businesses variance represents the decrease in operating revenues resulting from the absence of natural gas revenues at Entergy Louisiana and Entergy New Orleans in third quarter 2025 as a result of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
Total electric energy sales for Utility for the three months ended September 30, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 11,692 | 11,519 | 2 | ||||||||||||||
| Commercial | 8,499 | 8,394 | 1 | ||||||||||||||
| Industrial | 16,255 | 15,150 | 7 | ||||||||||||||
| Governmental | 678 | 684 | (1) | ||||||||||||||
| Total retail | 37,124 | 35,747 | 4 | ||||||||||||||
| Sales for resale | 4,079 | 3,727 | 9 | ||||||||||||||
| Total | 41,203 | 39,474 | 4 | ||||||||||||||
See Note 12 to the financial statements herein for additional discussion of operating revenues.
Other Income Statement Items
Utility
Other operation and maintenance expenses increased from $714 million for the third quarter 2024 to $764 million for the third quarter 2025 primarily due to:
•an increase of $36 million in power delivery expenses primarily due to higher vegetation maintenance costs;
•an increase of $13 million in compensation and benefits costs primarily due to higher incentive-based accruals in 2025 as compared to 2024;
•the expensing of $11 million at Entergy Louisiana 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 Entergy Louisiana’s Bayou Power Station project;
•an increase of $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 $5 million in bad debt expense.
The increase was partially offset by contract costs of $15 million, in third quarter 2024, related to operational performance, customer service, and organizational health initiatives, and a $13 million gain, recorded in third quarter 2025, resulting from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution
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businesses on July 1, 2025, which included the derecognition of $7 million of goodwill attributed to the businesses sold. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
Asset write-offs, impairments, and related charges includes a $13 million charge, recorded in third quarter 2025 at Entergy New Orleans, 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.
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 at Entergy Louisiana 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 Entergy Louisiana global stipulated settlement agreement.
Other regulatory charges (credits) - net includes the reversal in third quarter 2024 of a $92 million regulatory liability recognized for Entergy Arkansas’s 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. See Note 2 to the financial statements herein and in the Form 10-K for discussion of Entergy Arkansas’s Grand Gulf credit rider. In addition, Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.
Other income increased primarily due to:
•changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in third quarter 2024;
•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, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi; and
•an increase of $17 million in the amortization of tax gross ups on customer advances for construction.
Interest expense increased primarily due to:
•the issuance by Entergy Louisiana of $750 million of 5.80% Series mortgage bonds in January 2025;
•the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025;
•the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025;
•the issuance by System Energy of $300 million of 5.30% Series mortgage bonds in December 2024 and an additional $240 million in a reopening of the same series in May 2025; and
•carrying costs of $12 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 Legend Power Station project and the Orange County
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Advanced Power Station project, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi.
Parent and Other
Other income increased primarily due to legal provisions recorded in third quarter 2024.
Interest expense decreased primarily due to lower commercial paper balances and lower variable interest rates on commercial paper and credit facilities in 2025 as compared to 2024.
Income Taxes
The effective income tax rate was 22.7% 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 book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.
The effective income tax rate was 25% 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, partially offset by the resolution of an Arkansas state income tax audit. See Note 3 to the financial statements in the Form 10-K for discussion of the Arkansas state income tax audit resolution.
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Following are income statement variances for Utility, Parent & Other, and Entergy comparing the nine months ended September 30, 2025 to the nine months ended September 30, 2024 showing how much the line item increased or (decreased) in comparison to the prior period.
Utility | Parent & Other (a) | Entergy | ||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| 2024 Net Income (Loss) Attributable to Entergy Corporation | $1,422,779 | ($653,636) | $769,143 | |||||||||||||||||
| Operating revenues | 858,937 | (8,543) | 850,394 | |||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | 32,093 | (15,647) | 16,446 | |||||||||||||||||
| Purchased power | 363,207 | (13,535) | 349,672 | |||||||||||||||||
| Other regulatory charges (credits) - net | (228,658) | — | (228,658) | |||||||||||||||||
| Other operation and maintenance | 58,869 | (2,265) | 56,604 | |||||||||||||||||
Asset write-offs, impairments, and related charges | (118,980) | — | (118,980) | |||||||||||||||||
| Taxes other than income taxes | 60,557 | 276 | 60,833 | |||||||||||||||||
| Depreciation and amortization | 57,192 | 214 | 57,406 | |||||||||||||||||
| Other income (deductions) | 64,278 | 317,872 | 382,150 | |||||||||||||||||
| Interest expense | 130,103 | (5,280) | 124,823 | |||||||||||||||||
| Other expenses | (18,193) | 169 | (18,024) | |||||||||||||||||
| Income taxes | 105,384 | 68,260 | 173,644 | |||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | 5,431 | — | 5,431 | |||||||||||||||||
| 2025 Net Income (Loss) Attributable to Entergy Corporation | $1,898,989 | ($376,499) | $1,522,490 | |||||||||||||||||
(a)Parent & Other includes eliminations, which are primarily intersegment activity.
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Management’s Financial Discussion and Analysis
Results of operations for the nine months ended September 30, 2024 include: (1) a $317 million ($250 million net-of-tax) settlement charge, reflected in Parent & Other above, recognized as a result of a group annuity contract purchased in May 2024 to settle certain pension liabilities; (2) expenses of $151 million ($112 million net-of-tax), recorded at Utility 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; (3) a $132 million ($97 million net-of-tax) charge, recorded at Utility, to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024; and (4) a $78 million ($57 million net-of-tax) regulatory charge, recorded at Utility 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 11 to the financial statements in the Form 10-K for discussion of the group annuity contract and settlement charge. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana agreement in principle and the subsequently filed global stipulated settlement agreement. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding. See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and the resolution of the 2016-2018 IRS audit.
Operating Revenues
Utility
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 | $9,084 | ||||
| Fuel, rider, and other revenues that do not significantly affect net income | 423 | ||||
| Volume/weather | 207 | ||||
Retail electric price | 154 | ||||
| Retail one-time bill credit | 92 | ||||
| Purchased power agreement termination proceeds | 15 | ||||
| Effect of sale of natural gas distribution businesses | (32) | ||||
| 2025 operating revenues | $9,943 | ||||
The Utility operating companies’ results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.
The volume/weather variance is primarily due to 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 primary metals, chlor-alkali, petroleum refining, and technology industries.
The retail electric price variance is primarily due to:
•an increase in Entergy Arkansas’s formula rate plan rates effective January 2025;
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•increases in Entergy Mississippi’s formula rate plan rates effective April 2024 and July 2024 and an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2025; and
•the implementation of the distribution cost recovery factor rider effective with the first billing cycle in October 2024 and increases in the distribution cost recovery factor rider effective in December 2024 and June 2025, each at Entergy Texas.
See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.
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 previously recorded a regulatory liability at the time of the global black box settlement reached between System Energy and the MPSC in June 2022. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlements with the APSC and the MPSC. See Note 2 to the financial statements herein and in the Form 10-K for discussion of Entergy Arkansas’s Grand Gulf credit rider.
The purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized by Entergy Mississippi in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.
The effect of sale of natural gas distribution businesses variance represents the decrease in operating revenues resulting from the absence of natural gas revenues at Entergy Louisiana and Entergy New Orleans in third quarter 2025 as a result of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
Total electric energy sales for Utility for the nine months ended September 30, 2025 and 2024 are as follows:
| 2025 | 2024 | % Change | |||||||||||||||
| (GWh) | |||||||||||||||||
| Residential | 29,376 | 28,499 | 3 | ||||||||||||||
| Commercial | 22,007 | 21,797 | 1 | ||||||||||||||
| Industrial | 45,707 | 42,174 | 8 | ||||||||||||||
| Governmental | 1,853 | 1,883 | (2) | ||||||||||||||
| Total retail | 98,943 | 94,353 | 5 | ||||||||||||||
| Sales for resale | 9,847 | 10,737 | (8) | ||||||||||||||
| Total | 108,790 | 105,090 | 4 | ||||||||||||||
See Note 12 to the financial statements herein for additional discussion of operating revenues.
Other Income Statement Items
Utility
Purchased power includes an increase in 2025 of $29 million in costs, at Entergy Texas, 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,
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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 expenses decreased primarily due to decreased nuclear refueling outage expenses due to the amortization of lower costs associated with the most recent outages as compared to previous outages.
Other operation and maintenance expenses increased from $2,081 million for the nine months ended September 30, 2024 to $2,140 million for the nine months ended September 30, 2025 primarily due to:
•an increase of $44 million in power delivery expenses primarily due to higher vegetation maintenance costs;
•an increase of $19 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 $16 million in bad debt expense;
•an increase of $11 million in transmission costs allocated by MISO. See Note 2 to the financial statements in the Form 10-K for discussion of the recovery of these costs; and
•the expensing of $11 million at Entergy Louisiana 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 Entergy Louisiana’s Bayou Power Station project.
The increase was partially offset by:
•contract costs of $39 million in 2024 related to operational performance, customer service, and organizational health initiatives; and
•a $13 million gain, recorded in third quarter 2025, resulting from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025, which included the derecognition of $7 million of goodwill attributed to the businesses sold. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
Asset write-offs, impairments, and related charges includes:
•a $132 million charge to reflect the write-off, at Entergy Arkansas, of a previously recorded regulatory asset as a result of an adverse decision in the Entergy Arkansas opportunity sales proceeding in March 2024. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding; and
•a $13 million charge, recorded in third quarter 2025 at Entergy New Orleans, 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.
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.
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Management’s Financial Discussion and Analysis
Depreciation and amortization expenses increased primarily due to additions to plant in service and increases in nuclear depreciation rates at Entergy Louisiana effective September 2024 and September 2025 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. The increase was partially offset by the recognition of $28 million in depreciation expense in 2024 at Entergy Texas for the 2022 base rate case relate back period, effective over six months beginning January 2024. The recognition of depreciation expense for the relate back period was effective over the same period as collections from the relate back surcharge rider and resulted in no effect on net income. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the 2022 base rate case at Entergy Texas.
Other regulatory charges (credits) - net includes:
•the reversal in third quarter 2024 of a $92 million regulatory liability recognized for Entergy Arkansas’s 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. See Note 2 to the financial statements herein and in the Form 10-K for discussion of Entergy Arkansas’s Grand Gulf credit rider;
•regulatory charges of $150 million, recorded by Entergy Louisiana 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. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana agreement in principle and the subsequently filed global stipulated settlement agreement; and
•a regulatory charge of $78 million, recorded by Entergy New Orleans in first quarter 2024, primarily to reflect a settlement in principle between Entergy New Orleans and the City Council in April 2024 for additional sharing with customers of income tax benefits from the resolution of the 2016-2018 IRS audit. See Note 3 to the financial statements in the Form 10-K for discussion of the April 2024 settlement in principle and for discussion of the resolution of the 2016-2018 IRS audit.
In addition, Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.
Other income 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, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi;
•an increase of $41 million in the amortization of tax gross ups on customer advances for construction;
•a $17 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 $17 million in interest earned on money pool investments.
The increase was substantially offset by changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in 2024, and a decrease of $13 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitization.
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Interest expense increased primarily due to:
•the issuance by Entergy Arkansas 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;
•the issuance by Entergy Louisiana of $700 million of 5.15% Series mortgage bonds in August 2024;
•the issuance by Entergy Louisiana of $750 million of 5.80% Series mortgage bonds in January 2025;
•the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025;
•the issuance by Entergy Texas of $350 million of 5.55% Series mortgage bonds in August 2024;
•the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025;
•the issuance by System Energy of $300 million of 5.30% Series mortgage bonds in December 2024 and an additional $240 million in a reopening of the same series in May 2025; and
•carrying costs of $35 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 Orange County Advanced Power Station project, the Legend Power Station project, and the Lone Star Power Station project, each at Entergy Texas, the Franklin Farms Power Station Units 1 and 2 project at Entergy Louisiana, and the Vicksburg Advanced Power Station project at Entergy Mississippi.
Parent and Other
Other income (deductions) increased primarily due to a $317 million ($250 million net-of-tax) non-cash settlement charge recognized in second quarter 2024 as a result of a group annuity contract purchased in May 2024 to settle certain pension liabilities. See Note 11 to the financial statements in the Form 10-K for discussion of the group annuity contract and settlement charge.
Income Taxes
The effective income tax rate was 22.5% 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 book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items.
The effective income tax rate was 25.9% 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 accrual for state income taxes, amortization of accumulated deferred income taxes as a result of tax rate changes, and a provision for uncertain tax positions, partially offset by 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. See Note 3 to the financial statements in the Form 10-K for discussion of the Arkansas state income tax audit.
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Income Tax Legislation and Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation and Regulation” in the Form 10-K for discussion of income tax legislation and regulation. The following is an update to that discussion. See Note 10 to the financial statements herein for discussion of the nuclear and solar production tax credits recorded in 2025.
One Big Beautiful Bill Act of 2025
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted. The OBBBA is a wide ranging update to U.S. tax and spending policy. In particular, the OBBBA modified and extended various clean energy tax incentives relevant to electric utilities, preserving production tax credits under Internal Revenue Code section 45U for existing nuclear facilities through 2032 and generally maintaining the existing phase-out schedule for new nuclear and battery storage under Internal Revenue Code sections 45Y (clean electricity production credit) or Internal Revenue Code section 48E (clean electricity investment credit). In addition, the OBBBA preserved the tax credits for carbon capture and sequestration facilities that meet the requirements of Internal Revenue Code section 45Q. The OBBBA also retained full transferability of all credits and preserved five-year modified accelerated cost recovery system treatment for eligible Internal Revenue Code section 45Y and 48E assets.
In contrast, the OBBBA significantly shortened the time period for solar and wind facilities to claim clean energy tax incentives. In general, solar and wind facilities must be placed in service by December 31, 2027 to qualify for the tax credits, unless construction begins by July 3, 2026, and certain safe harbor requirements are met.
In addition, the OBBBA adopted new foreign entity of concern (FEOC) rules designed to deny clean energy tax incentives to all clean energy projects beginning construction after December 31, 2025 that use equipment beyond statutory guidelines from prohibited foreign entities (entities with ties to China, Russia, Iran, or North Korea). The FEOC rules also deny these incentives to taxpayers that rely beyond certain thresholds on equity or debt from specified foreign entities or that make payments to specified foreign entity counterparties under contracts or licensing agreements that give such counterparties “effective control” over an eligible project. These taxpayer FEOC rules will apply to taxpayers in their first taxable year following enactment of the OBBBA.
On July 7, 2025, an executive order was issued directing the U.S. Treasury to issue, among other things, new safe harbor guidance, particularly with respect to wind and solar facilities. On August 15, 2025, in response to the executive order, the U.S. Treasury released Notice 2025-42, which provides updated guidance regarding the beginning of construction requirements and termination of the wind and solar energy tax credits under sections 45Y and 48E. Notice 2025-42 provides additional guidance on these safe harbor provisions, clarifying the criteria for beginning construction and offering examples of equipment and contractual terms that will qualify a project for safe harbor treatment under the OBBBA. Notice 2025-42 states that the U.S. Treasury and the IRS are currently drafting additional guidance to address the FEOC rules.
Entergy Wholesale Commodities Exit from the Merchant Power Business
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Entergy Wholesale Commodities Exit from the Merchant Power Business” in the Form 10-K for discussion of the exit from the merchant power business. The following is an update to that discussion.
In July 2018, Entergy entered into a purchase and sale agreement with Holtec International to sell to a Holtec subsidiary 100% of the equity interests in the subsidiary that owns Palisades and the Big Rock Point Site, with a subsequent amendment to the purchase and sale agreement in February 2020. In December 2020, Entergy and Holtec submitted a license transfer application to the NRC requesting approval to transfer the Palisades and Big Rock Point licenses from Entergy to Holtec. In February 2021 several parties filed with the NRC petitions to intervene and requests for hearing challenging the license transfer application. In March 2021, Entergy and Holtec
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filed answers opposing the petitions to intervene and hearing requests, and the petitioners filed replies. In March 2021 an additional party also filed a petition to intervene and request for hearing. Entergy and Holtec filed an answer to the March 2021 petition in April 2021. The NRC issued an order approving the application in December 2021, subject to the NRC’s authority to condition, revise, or rescind the approval order based on the resolution of four pending requests for hearing. These petitions and requests for hearing remained pending with the NRC at the time of the closing of the Palisades transaction in June 2022. In July 2022 the NRC issued an order granting the Michigan Attorney General’s petition hearing request. The hearing was held in February 2023. In August 2025 the NRC transitioned Palisades from decommissioning status back to its oversight process for operating reactors. In October 2025, Entergy and Holtec filed a joint motion to dismiss the proceeding as moot, given Palisades’ return to operational status and impending restart. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Palisades plant.
Liquidity and Capital Resources
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy’s capital structure, capital spending plans and other uses of capital, and sources of capital. The following are updates to that discussion.
Recent announcements of changes to international trade policy and tariffs and further similar changes may impact Entergy’s business, operations, results of operations, and liquidity and capital resources. Potential impacts may include increases in costs associated with Entergy’s capital investments or operation and maintenance expenses; operational impacts, such as supply chain, manufacturing, or raw materials sourcing disruptions which may affect Entergy’s ability to make planned capital investments as and when expected and needed; legal uncertainties, such as potential legal or other challenges to presidential tariff authority; or broader economic risks, including shifting customer demand, impacts on customer investment decisions, and volatile or uncertain credit and capital markets, which may affect Entergy’s ability to access needed capital. The nature and extent of any such effects will depend on, among other things, the specifics of the changes that are ultimately implemented both domestically and internationally, the responses of vendors, suppliers, and other counterparties to those changes, indirect effects on the price and availability of non-tariffed goods, and the effectiveness of mitigation measures.
Capital Structure and Resources
Entergy’s debt to capital ratio is shown in the following table.
| September 30, 2025 | December 31, 2024 | ||||||||||
| Debt to capital | 64.3 | % | 65.3 | % | |||||||
| Effect of excluding securitization bonds | (0.2 | %) | (0.2 | %) | |||||||
| Debt to capital, excluding securitization bonds (non-GAAP) (a) | 64.1 | % | 65.1 | % | |||||||
| Effect of subtracting cash | (1.2 | %) | (0.7 | %) | |||||||
| Net debt to net capital, excluding securitization bonds (non-GAAP) (a) | 62.9 | % | 64.4 | % | |||||||
(a)Calculation excludes the Texas securitization bonds, which are non-recourse to Entergy Texas.
As of September 30, 2025, 19% of the debt outstanding is at the parent company, Entergy Corporation, and 81% is at the Utility segment. Net debt consists of debt less cash and cash equivalents. Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt, equity, and subsidiaries’ preferred stock without sinking fund. Net capital consists of capital less cash and cash equivalents. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy’s financial condition because the securitization bonds are non-recourse to
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Entergy, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy also uses the net debt to net capital ratio excluding securitization bonds in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy’s financial condition because net debt indicates Entergy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.
Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2030. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. As there were no borrowings under the facility for the nine months ended September 30, 2025, the estimated interest rate as of September 30, 2025 that would have been applied to outstanding borrowings under the facility was 5.76%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of September 30, 2025:
| Capacity | Borrowings | Letters of Credit | Capacity Available | |||||||||||||||||
| (In Millions) | ||||||||||||||||||||
| $3,000 | $— | $3 | $2,997 | |||||||||||||||||
Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above. Entergy is currently in compliance with the covenant and expects to remain in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur. See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’ credit facilities.
Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of September 30, 2025, Entergy Corporation had $1,398 million of commercial paper outstanding. The weighted-average interest rate for the nine months ended September 30, 2025 was 4.64%.
Equity Issuances and Equity Distribution Program
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program” in the Form 10-K and Note 3 to the financial statements herein for discussion of equity issuances, the equity distribution program, and equity forward sale agreements. The following are updates to that discussion.
In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties. The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements.
In May 2025, Entergy Corporation physically settled all of its obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $806 million.
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In October 2025, Entergy Corporation physically settled all of its obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $332 million.
Entergy Corporation currently expects to issue approximately $4.4 billion of equity through 2029, which it may issue under its at the market equity distribution program or otherwise, with approximately $1.9 billion already contracted under forward sale agreements, including under its at the market equity distribution program and the March 2025 equity offering described above.
Capital Expenditure Plans and Other Uses of Capital
See the table and discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital,” that sets forth the amounts of Entergy’s planned construction and other capital investments for 2025 through 2027. The following are updates to that discussion.
Entergy is developing its capital investment plan for 2026 through 2029 and currently anticipates that the Utility will make approximately $41 billion in capital investments during that period, including $12 billion in 2026, $11 billion in 2027, $10 billion in 2028, and $8 billion in 2029. In addition to routine capital spending to maintain operations, the preliminary Utility estimate includes investments in generation projects to modernize, decarbonize, expand, and diversify the Utility operating companies’ portfolios, as well as to support customer growth, including Ironwood Power Station (formerly Lake Catherine Unit 5), Jefferson Power Station, Arkansas Cypress Solar, Segno Solar, Votaw Solar, Bogalusa West Solar, Franklin Farms Power Station Units 1 and 2, Waterford 5 Power Station, Delta Blues Advanced Power Station, Delta Solar, Penton Solar, Traceview Advanced Power Station, Vicksburg Advanced Power Station, Orange County Advanced Power Station, Lone Star Power Station, Legend Power Station, and potential construction of additional generation; investments in the Utility nuclear fleet; transmission spending to improve reliability and resilience while also supporting renewables expansion and customer growth; distribution and Utility support spending to improve reliability, resilience, and customer experience through projects focused on asset renewals and enhancements and grid stability; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of business restructuring, regulatory constraints and requirements, governmental actions, including trade-related governmental actions, such as tariffs and other measures, environmental regulations, business opportunities, market volatility, economic trends, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies. Entergy 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.
Renewables
Entergy Arkansas 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.
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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.
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 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 RFP 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.
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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. 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.
Other Generation and Transmission
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.
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
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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.
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.
Entergy Louisiana Additional Generation and Transmission Resources
As discussed in the Form 10-K, in October 2024, Entergy Louisiana filed an application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement has been executed. The filing requests LPSC certification of three new combined cycle combustion turbine generation resources totaling 2,262 MW, each of which will be enabled for future carbon capture and storage, a new 500 kV transmission line, and 500 kV substation upgrades. 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 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.
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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 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
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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.
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.
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
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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 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.
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.
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
Entergy Texas
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
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Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis
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.
Dividends
Declarations of dividends on Entergy Corporation common stock are made at the discretion of the Board. Among other things, the Board evaluates the level of Entergy Corporation common stock dividends based upon earnings per share from the Utility segment and the Parent and Other portion of the business, financial strength, and future investment opportunities. In October 2025 the Board declared a dividend of $0.64 per share.
Cash Flow Activity
As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the nine months ended September 30, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Cash and cash equivalents at beginning of period | $860 | $133 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | 3,932 | 3,109 | |||||||||
| Investing activities | (5,211) | (4,002) | |||||||||
| Financing activities | 1,936 | 2,172 | |||||||||
| Net increase in cash and cash equivalents | 657 | 1,279 | |||||||||
| Cash and cash equivalents at end of period | $1,517 | $1,412 | |||||||||
Operating Activities
Net cash flow provided by operating activities increased $823 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:
•higher collections from Utility customers;
•the receipt of $405 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 Note 10 to the financial statements herein for discussion of the nuclear and solar production tax credits;
•the receipt of $313 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;
•the timing of payments to vendors; and
•one-time bill credits of $92 million in third quarter 2024 to Entergy Arkansas’s retail customers through the Grand Gulf credit rider as a result 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 agreement with the APSC and Entergy Arkansas’s Grand Gulf credit rider.
The increase was partially offset by higher fuel and purchased power payments and an increase of $168 million in interest paid. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery.
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Management’s Financial Discussion and Analysis
Investing Activities
Net cash flow used in investing activities increased $1,209 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:
•an increase of $1,712 million in non-nuclear generation construction expenditures primarily due to higher spending by Entergy Arkansas on the Ironwood Power Station (formerly Lake Catherine Unit 5) project, by Entergy Louisiana on the Franklin Farms Power Station Units 1 and 2 project and the Sterlington Facility solar project, by Entergy Mississippi on the Delta Blues Advanced Power Station project, the Vicksburg Advanced Power Station project, and the Penton Solar project, and by Entergy Texas on the Lone Star Power Station project, the Legend Power Station project, and the Orange County Advanced Power Station project;
•an increase of $340 million in distribution construction expenditures primarily due to increased investment in the resilience of the Utility distribution system and higher capital expenditures for storm restoration in 2025;
•an increase of $168 million in transmission construction expenditures primarily due to higher spending by Entergy Louisiana on the Amite South transmission projects and increased spending on various other transmission projects in 2025;
•an increase of $106 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2025;
•cash collateral of $37 million posted in 2025 to support Entergy Louisiana’s obligations to MISO; and
•an increase of $36 million in decommissioning trust fund investment activity.
The increase was partially offset by:
•the receipt of $491 million in proceeds from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025;
•the initial payment of approximately $308 million in August 2024 for the purchase of the Driver Solar facility by Entergy Arkansas;
•the initial and substantial completion payments totaling approximately $186 million in 2024 for the purchase of the Walnut Bend Solar facility by Entergy Arkansas;
•a decrease of $79 million in information technology capital expenditures primarily due to decreased spending on technology upgrade projects in 2025;
•the initial payment of approximately $48 million in August 2024 for the purchase of the West Memphis Solar facility by Entergy Arkansas;
•net receipts from storm reserve escrow accounts of $34 million in 2025 compared to net payments to storm reserve escrow accounts of $13 million in 2024; and
•a decrease of $41 million in nuclear fuel purchases due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle.
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.
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Management’s Financial Discussion and Analysis
Financing Activities
Net cash flow provided by financing activities decreased $236 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to:
•long-term debt activity providing approximately $1,013 million of cash in 2025 compared to providing approximately $2,742 million of cash in 2024;
•a decrease of $61 million in proceeds received from treasury stock issuances in 2025 due to a smaller amount of previously repurchased Entergy Corporation common stock issued in 2025 to satisfy stock option exercises as compared to 2024; and
•an increase of $61 million in common stock dividends paid in 2025 as a result of an increase in the dividend paid per share in 2025 as compared to 2024.
The decrease was partially offset by:
•$805 million in net proceeds from the issuance of common stock under the at the market equity distribution program in 2025. There were no issuances of common stock under the at the market equity distribution program in 2024;
•net issuances of $488 million of commercial paper in 2025 as compared to net repayments of $16 million of commercial paper in 2024; and
•an increase of $295 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements.
See Note 3 to the financial statements herein and Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s at the market equity distribution program. See Note 4 to the financial statements herein and Notes 4 and 5 to the financial statements in the Form 10-K for details of Entergy’s commercial paper program and long-term debt.
Rate, Cost-recovery, and Other Regulation
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings.
State and Local Rate Regulation and Fuel-Cost Recovery
See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings.
Federal Regulation
See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings.
Market and Credit Risk Sensitive Instruments
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Market and Credit Risk Sensitive Instruments” in the Form 10-K for a discussion of market and credit risk sensitive instruments. The following is an update to that discussion.
Some of the agreements to sell the power produced by Entergy’s non-utility operations business contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under such
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Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis
agreements. The primary form of credit support used to satisfy these requirements is an Entergy Corporation guarantee. Cash and letters of credit are also acceptable forms of credit support. At September 30, 2025, based on power prices at that time, Entergy had no liquidity exposure under the guarantees in place supporting its non-utility operations business transactions and $10 million of posted cash collateral.
Nuclear Matters
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters. 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. All of the nuclear generating plants owned and operated by Entergy’s Utility business are currently in Column 1, except Waterford 3, which is 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.
Critical Accounting Estimates
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements. The following is an update to that discussion.
As discussed in the Form 10-K, in March 2024 the SEC issued final rules that require registrants to provide certain climate-related disclosures in annual reports and registration statements in order to enhance and standardize climate-related disclosures for investors. In April 2024 the SEC stayed the final rules, pending judicial review of consolidated challenges to the rules by the United States Court of Appeals for the Eighth Circuit. In March 2025 the SEC voted to end its defense of the final rules against parties that have legally challenged the rules. In April 2025 the United States Court of Appeals for the Eighth Circuit ordered the litigation to be held in abeyance and directed the SEC to indicate within 90 days whether the SEC would reconsider or review the climate disclosure rules. In July 2025 the SEC submitted a status report to the United States Court of Appeals for the Eighth Circuit stating that it does not intend to review or reconsider its final rules at this time and requesting that the Court of
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Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis
Appeals terminate the abeyance and proceed with its judicial review of the case. In September 2025 the United States Court of Appeals for the Eighth Circuit paused its consideration of legal challenges against the rules, pending further action by the SEC. Entergy will continue to monitor developments related to the SEC’s final rules on climate-related disclosures.
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| ENTERGY CORPORATION 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, Except Share Data) | |||||||||||||||||||||||
| OPERATING REVENUES | |||||||||||||||||||||||
| Electric | $ | $ | $ | $ | |||||||||||||||||||
| Natural gas | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| TOTAL | |||||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Operation and Maintenance: | |||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | |||||||||||||||||||||||
| Purchased power | |||||||||||||||||||||||
| Nuclear refueling outage expenses | |||||||||||||||||||||||
| Other operation and maintenance | |||||||||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | |||||||||||||||||||||||
| Decommissioning | |||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | ( | ( | ||||||||||||||||||||
| TOTAL | |||||||||||||||||||||||
| OPERATING INCOME | |||||||||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | |||||||||||||||||||||||
| Allowance for equity funds used during construction | |||||||||||||||||||||||
| Interest and investment income | |||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | ( | |||||||||||||||||||
| TOTAL | ( | ||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | |||||||||||||||||||
| TOTAL | |||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | |||||||||||||||||||||||
| Income taxes | |||||||||||||||||||||||
| CONSOLIDATED NET INCOME | |||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | |||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION | $ | $ | $ | $ | |||||||||||||||||||
| Earnings per average common share: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
| Basic average number of common shares outstanding | |||||||||||||||||||||||
| Diluted average number of common shares outstanding | |||||||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||
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| ENTERGY CORPORATION 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) | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive (loss) income | |||||||||||||||||||||||
Pension and other postretirement plan changes (net of tax (benefit) expense of ($ | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
| Comprehensive Income | |||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests | |||||||||||||||||||||||
| Comprehensive Income Attributable to Entergy Corporation | $ | $ | $ | $ | |||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||
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| ENTERGY CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Nine Months Ended September 30, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Consolidated net income | $ | $ | ||||||||||||
| Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | ||||||||||||||
| Pension settlement charge | ||||||||||||||
| Changes in working capital: | ||||||||||||||
| Receivables | ( | ( | ||||||||||||
| Fuel inventory | ||||||||||||||
| Accounts payable | ( | |||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ( | |||||||||||||
| Other working capital accounts | ( | |||||||||||||
| Changes in provisions for estimated losses | ( | |||||||||||||
| Changes in other regulatory assets | ||||||||||||||
| Changes in other regulatory liabilities | ||||||||||||||
| Changes in pension and other postretirement funded status | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction/capital expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Nuclear fuel purchases | ( | ( | ||||||||||||
| Payment for purchase of plant and assets | ( | ( | ||||||||||||
| Proceeds from sale of business and assets | ||||||||||||||
| Insurance proceeds received for property damages | ||||||||||||||
| Changes in securitization account | ( | ( | ||||||||||||
| Payments to storm reserve escrow accounts | ( | ( | ||||||||||||
| Receipts from storm reserve escrow accounts | ||||||||||||||
| Decrease (increase) in other investments | ( | |||||||||||||
| Litigation proceeds for reimbursement of spent nuclear fuel storage costs | ||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | ||||||||||||||
| Investment in nuclear decommissioning trust funds | ( | ( | ||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| ENTERGY CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| For the Nine Months Ended September 30, 2025 and 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of: | ||||||||||||||
| Long-term debt | ||||||||||||||
| Treasury stock | ||||||||||||||
| Common stock | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Changes in commercial paper - net | ( | |||||||||||||
| Customer advances received for construction | ||||||||||||||
| Customer advances used for construction | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Dividends paid: | ||||||||||||||
| Common stock | ( | ( | ||||||||||||
| Preferred stock | ( | ( | ||||||||||||
| Net cash flow provided by financing activities | ||||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
Income taxes - net (includes production tax credit sale proceeds of $ | ($ | $ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| ENTERGY CORPORATION 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Deferred nuclear refueling outage costs | ||||||||||||||
| Current assets held for sale | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Decommissioning trust funds | ||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | ||||||||||||||
| Storm reserve escrow accounts | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||
| Electric | ||||||||||||||
| Natural gas | ||||||||||||||
| Construction work in progress | ||||||||||||||
| Nuclear fuel | ||||||||||||||
| TOTAL PROPERTY, PLANT, AND EQUIPMENT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| PROPERTY, PLANT, AND EQUIPMENT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
Other regulatory assets (includes securitization property of $ | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Goodwill | ||||||||||||||
| Accumulated deferred income taxes | ||||||||||||||
| Non-current assets held for sale | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| ENTERGY CORPORATION 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 | $ | $ | ||||||||||||
| Notes payable and commercial paper | ||||||||||||||
| Accounts payable | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Pension and other postretirement liabilities | ||||||||||||||
| Customer advances | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Decommissioning and asset retirement cost liabilities | ||||||||||||||
| Accumulated provisions | ||||||||||||||
| Pension and other postretirement liabilities | ||||||||||||||
Long-term debt (includes securitization bonds of $ | ||||||||||||||
| Customer advances for construction | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
Subsidiaries’ preferred stock without sinking fund | ||||||||||||||
| EQUITY | ||||||||||||||
Preferred stock, | ||||||||||||||
Common stock, $ | ||||||||||||||
| Paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Accumulated other comprehensive income | ||||||||||||||
Less - treasury stock, at cost ( | ||||||||||||||
Total shareholders’ equity | ||||||||||||||
Subsidiaries’ preferred stock without sinking fund and noncontrolling interests | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| ENTERGY CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Subsidiaries’ Preferred Stock and Noncontrolling Interests | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | ( | ||||||||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances and sales under the at the market equity distribution program | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock issuance costs | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | ( | ||||||||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||||||||||||||||||||
(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2025, second quarter 2025, and third quarter 2025 each includes $ | |||||||||||||||||||||||||||||||||||||||||
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| ENTERGY CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Subsidiaries' Preferred Stock and Noncontrolling Interests | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | ($ | $ | $ | ($ | $ | ||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at March 31, 2024 | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | ( | ||||||||||||||||||||||||||||||||||||||||
| Consolidated net income (a) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Common stock issuances related to stock plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Common stock dividends declared | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries (a) | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||||||||||||||||||||
(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2024, second quarter 2024, and third quarter 2024 each includes $ | |||||||||||||||||||||||||||||||||||||||||
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ENTERGY CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory authorities, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein.
Vidalia Purchased Power Agreement
See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement.
Spent Nuclear Fuel Litigation
See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. The following is an update to that discussion.
As discussed in the Form 10-K, in October 2024 the U.S. Court of Federal Claims issued a final judgment in the amount of $7 million in favor of Holtec Palisades, LLC (previously Entergy Nuclear Palisades) and against the DOE in the final round Palisades damages case. Holtec, as the current owner, received payment from the U.S. Treasury in March 2025 and subsequently transferred the $7 million judgment to Entergy. The effect in 2024 of recording the judgment was a reduction to asset write-offs, impairments, and related charges (credits). The damages awarded included $4 million related to costs previously recorded as plant and $3 million related to costs previously recorded as other operation and maintenance expenses.
Nuclear Insurance
See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants.
Non-Nuclear Property Insurance
See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program.
Employment and Labor-related Proceedings
See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings.
Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas)
See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation.
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Notes to Financial Statements
Grand Gulf-Related Agreements
See Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements, including the Unit Power Sales Agreement, the Availability Agreement, and the Reallocation Agreement. The following is an update to that discussion.
As discussed in the Form 10-K, System Energy historically sold all of its share of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans in accordance with specified percentages (Entergy Arkansas - 36 %, Entergy Louisiana - 14 %, Entergy Mississippi - 33 %, and Entergy New Orleans - 17 %) as ordered by the FERC under the Unit Power Sales Agreement. In August 2024 the LPSC approved a settlement with Entergy Louisiana to globally resolve all of the LPSC’s actual and potential claims in multiple docketed proceedings pending before the FERC and with System Energy’s past implementation of the Unit Power Sales Agreement. The settlement was approved by the FERC in November 2024. The terms of the settlement included an agreement that Entergy Louisiana would divest to Entergy Mississippi its 14 % share of capacity and energy from Grand Gulf under the Unit Power Sales Agreement and its 2.43 % share of capacity and energy from Entergy Arkansas under the MSS-4 replacement tariff. This divestiture was being effectuated initially through Entergy Mississippi’s purchases from Entergy Louisiana pursuant to a bridge PPA governed by the MSS-4 replacement tariff (bridge PPA). In September 2024, Entergy Mississippi filed a notice of intent with the MPSC that related to and sought approval of the divestiture. The bridge PPA to effectuate this divestiture was approved by the FERC in November 2024. The MPSC approved the bridge PPA, effective as of January 1, 2025. Under the divestiture, Entergy Mississippi also assumed any and all of Entergy Louisiana’s rights and obligations under the Availability Agreement and agreed to hold Entergy Louisiana harmless with respect thereto, as of January 1, 2025.
Effective October 1, 2025, System Energy began selling all of its share of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans in accordance with specified percentages (Entergy Arkansas - 24.2 %, Entergy Mississippi - 56.4 %, and Entergy New Orleans - 19.4 %) as approved by the FERC under an amended Unit Power Sales Agreement. The amended Unit Power Sales Agreement removed Entergy Louisiana from the entitlement to purchase power from Grand Gulf and thus on October 1, 2025, the bridge PPA between Entergy Louisiana and Entergy Mississippi terminated. In addition, effective October 1, 2025, System Energy, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans terminated the Availability Agreement, and, immediately thereafter, System Energy, Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans entered into a new Availability Agreement with allocation percentages conforming to their entitlement percentages under the amended Unit Power Sales Agreement. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the System Energy settlement with the LPSC.
Exclusivity Agreement with Major Vendor
Entergy entered into an exclusivity agreement with a major vendor to manufacture power island equipment (PIE) and combustion turbines (CT) for combustion turbine generator set frames larger than 400 MWs. The agreement guarantees Entergy one manufacturing slot per quarter for the shorter of a five-year period or until Entergy fulfills its minimum commitment. The agreement was amended in third quarter 2025, updating the minimum order of 15 sets of PIE and two CTs to a minimum order of 21 sets of PIE and two CTs during that time period. The commitments are fully transferable to any of the Utility operating companies. Cancellation or failure to purchase the minimum commitment amounts will result in a charge.
If any of the Utility operating companies purchases any CTs within the scope of the agreement from another supplier (except as permitted under the agreement), then the vendor has the right to terminate all or a portion of the agreement. In the event of such termination, the Utility operating company would then be obligated to pay 50% of the CT base price for each PIE or CT not yet ordered. The agreement does not establish final pricing and delivery dates of purchases that will go towards meeting the commitments under the agreement. Such terms shall be agreed to in separate agreements.
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Notes to Financial Statements
NOTE 2. RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Regulatory Assets and Regulatory Liabilities
See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion.
Fuel and purchased power cost recovery
Entergy Arkansas
Energy Cost Recovery Rider
In March 2025, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.00882 per kWh to $0.01333 per kWh. The annual redetermination included a credit related to the remaining balance due to retail customers from the System Energy settlement with the APSC, plus carrying charges and interest. See “Retail Rate Proceedings - Filings with the APSC (Entergy Arkansas) - Retail Rates - Grand Gulf Credit Rider” below for further discussion. The primary reason for the rate increase is an adjustment to account for projected increases in natural gas prices in 2025. This adjustment is expected to reduce the rate change that will be reflected in its 2026 energy cost rate redetermination. The redetermined rate of $0.01333 per kWh became effective with the first billing cycle in April 2025 through the normal operation of the tariff.
Entergy Louisiana
As discussed in the Form 10-K, in January 2023 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings. The audit 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.
Entergy Texas
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,
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Notes to Financial Statements
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.
Retail Rate Proceedings
See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that discussion.
Filings with the APSC (Entergy Arkansas)
Retail Rates
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 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 "Regulatory Assets and Regulatory Liabilities - Fuel and purchased power cost recovery - Entergy Arkansas - Energy Cost Recovery Rider" above. In April 2025 the APSC approved Entergy Arkansas’s proposal to include the remaining balance in its energy cost
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Notes to Financial Statements
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.
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.
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Notes to Financial Statements
Filings with the LPSC (Entergy Louisiana)
Retail Rates - Electric
2023 Formula Rate Plan Filing
As discussed in the Form 10-K, in August 2024, pursuant to the global stipulated settlement agreement 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 and requesting that the LPSC issue an order accepting Entergy Louisiana’s evaluation report and, ultimately, resolving this matter. In March 2025 the LPSC issued an order accepting the evaluation report.
In December 2024, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed an interim rate adjustment for the 2023 test year reflecting the return of $25.1 million of refunds from the System Energy settlement with the LPSC to customers from January through August 2025. In February 2025, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting the divestiture of Entergy Louisiana’s share of Grand Gulf capacity and energy, which was effective as of January 1, 2025. The second interim rate adjustment also reflected a revenue increase of $17.8 million for the recovery of Hurricane Francine costs as approved by the LPSC (on an interim basis). The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the Hurricane Francine proceeding in “Storm Cost Recovery Filings with Retail Regulators – Entergy Louisiana – Hurricane Francine” below. See Note 8 to the financial statements in the Form 10-K for discussion of Entergy Louisiana’s divestiture from the Unit Power Sales Agreement. 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
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Notes to Financial Statements
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 whether Entergy Louisiana appropriately credited certain revenues to customers during the September and October 2025 billing cycles.
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 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.
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Notes to Financial Statements
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.
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
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regulatory asset with a regulatory liability for the deferred earnings related to certain low interest debt, as described above.
Filings with the MPSC (Entergy Mississippi)
Retail Rates
2025 Formula Rate Plan Filing
In February 2025, Entergy Mississippi submitted its formula rate plan 2025 test year filing and 2024 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2024 calendar year to be within the formula rate plan bandwidth and projected earned return for the 2025 calendar year 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.
Filings with the City Council (Entergy New Orleans)
Retail Rates
2025 Formula Rate Plan Filing
In April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing. The 2024 evaluation report produced an electric earned return on equity of 10.98 % compared to the
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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 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.
Filings with the PUCT and Texas Cities (Entergy Texas)
Retail Rates
Distribution Cost Recovery Factor (DCRF) Rider
In April 2025, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The 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.
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.
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Entergy Arkansas Opportunity Sales Proceeding
As discussed in the Form 10-K, in September 2020, Entergy Arkansas filed a complaint in the U.S. District Court for the Eastern District of Arkansas challenging the APSC’s denial of recovery of $135 million of payments to other Utility operating companies in December 2018 relating to off-system sales of electricity from 2002-2009, as ordered by the FERC. The complaint also involved a challenge to the $13.7 million, plus interest, of related refunds ordered by the APSC and paid by Entergy Arkansas in August 2020. The trial was held in February 2023.
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.
MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding
See Note 2 to the financial statements in the Form 10-K for discussion of the MSS-4 replacement tariff net operating loss carryforward proceeding.
The MSS-4 replacement tariff, a tariff governing the sales of energy and capacity among the Utility operating companies, includes protocols that provide for the disclosure of cost inputs, an opportunity for informal discovery procedures, and a challenge process. In April 2025, pursuant to such protocols, the City Council filed with the FERC a formal challenge relating to Entergy Services’ inclusion and allocation of net operating loss carryforward accumulated deferred income taxes in the MSS-4 replacement tariff rates charged to Entergy New Orleans’s monthly bills for calendar year 2023. In May 2025, Entergy Services filed a response to the formal challenge and is awaiting a response from the FERC.
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
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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.
Storm Cost Recovery Filings with Retail Regulators
See Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings. The following is an update to that discussion.
Entergy Louisiana
Hurricane Francine
In September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana. The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.
In December 2024, and subsequently amended in an errata filed in February 2025, Entergy Louisiana submitted an application to the LPSC seeking a determination that approximately $183.6 million in storm restoration costs associated with Hurricane Francine were reasonable and necessary and, therefore, eligible for recovery from customers, as well as approval to recover approximately $3.6 million in certain carrying costs from customers. In February 2025, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting a revenue increase of $17.8 million from funds approved by the LPSC (on an interim basis) for Hurricane Francine recovery costs. The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the 2023 formula rate plan filing above. Also in February 2025, Entergy Louisiana withdrew $33.5 million from its funded storm reserves. In June 2025 the LPSC staff filed direct testimony. The LPSC staff recommended approval of Entergy Louisiana’s as-requested storm restoration costs with the exception of approximately $10.6 million, comprised primarily of estimates of mutual assistance invoices that had not yet been received at the time of filing and that ultimately exceeded the actual amounts invoiced, as well as certain incentive compensation, and $1.8 million associated with certain carrying costs. In September 2025, Entergy Louisiana reached a settlement with the LPSC staff pursuant to which Entergy Louisiana and the LPSC staff agreed on the amounts recoverable by Entergy Louisiana in connection with Hurricane Francine. Both intervenors in the proceeding stated they did not oppose the settlement. A hearing on the proposed settlement before the ALJ occurred in October 2025, and the proposed settlement is expected to be considered by the LPSC at its November 2025 meeting.
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NOTE 3. EQUITY (Entergy Corporation and Entergy Louisiana)
Common Stock
Earnings per Share
Historical share and share-based data presented in the accompanying financial statements has been retroactively adjusted to reflect the two -for-one forward stock split of Entergy Corporation common stock effective December 12, 2024. See Note 7 to the financial statements in the Form 10-K for discussion of the stock split.
The following tables present Entergy’s basic and diluted earnings per share calculations for the three and nine months ended September 30, 2025 and 2024, included on the consolidated income statements:
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Data; Shares in Millions) | |||||||||||||||||||||||
| $/share | $/share | ||||||||||||||||||||||
| Consolidated net income | $ | $ | |||||||||||||||||||||
| Less: Preferred dividend requirements of subsidiaries and noncontrolling interests | |||||||||||||||||||||||
| Net income attributable to Entergy Corporation | $ | $ | |||||||||||||||||||||
| Basic shares and earnings per average common share | $ | $ | |||||||||||||||||||||
| Average dilutive effect of: | |||||||||||||||||||||||
| Stock options | |||||||||||||||||||||||
| Other equity plans | |||||||||||||||||||||||
| Equity forwards | ( | ( | |||||||||||||||||||||
| Diluted shares and earnings per average common share | $ | $ | |||||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Data; Shares in Millions) | |||||||||||||||||||||||
| $/share | $/share | ||||||||||||||||||||||
| Consolidated net income | $ | $ | |||||||||||||||||||||
| Less: Preferred dividend requirements of subsidiaries and noncontrolling interests | |||||||||||||||||||||||
| Net income attributable to Entergy Corporation | $ | $ | |||||||||||||||||||||
| Basic shares and earnings per average common share | $ | $ | |||||||||||||||||||||
| Average dilutive effect of: | |||||||||||||||||||||||
| Stock options | ( | ||||||||||||||||||||||
| Other equity plans | ( | ( | |||||||||||||||||||||
| Equity forwards | ( | ||||||||||||||||||||||
| Diluted shares and earnings per average common share | $ | $ | |||||||||||||||||||||
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Earnings per share dilution resulting from stock options outstanding and other equity plans is determined under the treasury stock method. The calculation of diluted earnings per share excluded 366,136 stock options outstanding for the three months ended September 30, 2025 and 1,548,386 stock options outstanding for the three months ended September 30, 2024 because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 325,454 stock options outstanding for the nine months ended September 30, 2025 and 2,477,756 stock options outstanding for the nine months ended September 30, 2024 because their effect would have been antidilutive. Until settlement of the forward sale agreements discussed below in “Equity Distribution Program” and “Equity Forward Sale Agreements,” earnings per share dilution resulting from the agreements, if any, is determined under the treasury stock method. Share dilution occurs when the average market price of Entergy Corporation’s common stock is higher than the average forward sales price. The calculation of diluted earnings per share excluded 94,446 shares for the three months ended September 30, 2025 and 3,485,736 shares for the three months ended September 30, 2024 under forward sale agreements outstanding because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 901,408 shares for the nine months ended September 30, 2025 and 3,164,908 shares for the nine months ended September 30, 2024 under forward sale agreements outstanding because their effect would have been antidilutive.
Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.
Dividends declared per common share were $0.60 for the three months ended September 30, 2025 and $0.57 for the three months ended September 30, 2024. Dividends declared per common share were $1.80 for the nine months ended September 30, 2025 and $1.70 for the nine months ended September 30, 2024.
(System Energy)
In February 2025, System Energy paid its parent, Entergy Corporation, a $20 million distribution out of its common stock.
In May 2025, System Energy paid its parent, Entergy Corporation, a $30 million distribution out of its common stock.
Equity Distribution Program
See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s at the market equity distribution program. The following are updates to that discussion.
In February 2025, Entergy Corporation increased by an additional $1.5 billion the aggregate gross sales price authorized under its at the market equity distribution program pursuant to the terms of the equity distribution sales agreement for such program. The aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $4.5 billion. As of September 30, 2025, an aggregate gross sales price of approximately $2.8 billion has been sold under the at the market equity distribution program.
During the nine months ended September 30, 2025 and 2024, there were no
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The following forward sale agreements were entered into by Entergy Corporation under its at the market equity distribution program during the nine months ended September 30, 2025:
| Effective Date | Shares of Common Stock per Forward Sale Agreement | Maturity Date | Forward Sale Price per Share | Gross Sales Price | Forward Sellers Fees | |||||||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Data) | ||||||||||||||||||||||||||||||||
| March 2025 | August 2026 | $ | $ | $ | ||||||||||||||||||||||||||||
During the nine months ended September 30, 2025, Entergy Corporation physically settled its obligations under the following forward sale agreements:
| Effective Date of Forward Sale Agreements | Shares of Common Stock Issued | Gross Sales Price | Forward Sellers Fees | Forward Sale Price per Share | Cash Proceeds at Settlement | ||||||||||||||||||||||||||||||
| (Dollars In Thousands, Except Per Share Data) | |||||||||||||||||||||||||||||||||||
| Forward sale agreements settled in May 2025: | |||||||||||||||||||||||||||||||||||
| December 2023 | $ | $ | |||||||||||||||||||||||||||||||||
| March 2024 | $ | $ | |||||||||||||||||||||||||||||||||
| March 2024 | $ | $ | |||||||||||||||||||||||||||||||||
| May 2024 | $ | $ | |||||||||||||||||||||||||||||||||
| May 2024 | $ | $ | |||||||||||||||||||||||||||||||||
| June 2024 | $ | $ | |||||||||||||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||||||||||||||
Entergy Corporation incurred an aggregate amount of approximately $1.0 million of general issuance costs associated with the May 2025 settlement. Entergy Corporation used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy Corporation’s revolving credit facility, and other debt.
In September 2025, Entergy Corporation amended certain terms and conditions of the September 2024 forward sale agreements replacing the original maturity date of October 2025 with October 2026.
In October 2025, Entergy Corporation physically settled its obligations under the August 2024 forward sale agreements by delivering 5,692,604 shares of common stock in exchange for cash proceeds of $332 million. The forward sale price used to determine the cash proceeds received by Entergy Corporation was calculated based on the initial forward sale price of $58.30 per share as adjusted in accordance with the forward sale agreements. Entergy Corporation incurred an aggregate amount of approximately $0.4 million of general issuance costs with the settlement.
Equity Forward Sale Agreements
In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties. No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the forward sale agreements occur. The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to
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adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements.
Until settlement of the forward sale agreements, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. If Entergy had elected to net share settle the forward sale agreements as of September 30, 2025, Entergy would have been required to deliver 2.1 million shares.
Treasury Stock
During the nine months ended September 30, 2025, Entergy Corporation reissued 1,456,014 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the nine months ended September 30, 2025.
Retained Earnings
On October 31, 2025, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.64 per share, payable on December 1, 2025 to holders of record as of November 13, 2025.
Comprehensive Income
Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2025 and 2024:
| Pension and Other Postretirement Plan Changes | |||||||||||
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Beginning balance, July 1, | $ | $ | |||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | |||||||||
| Net other comprehensive loss for the period | ( | ( | |||||||||
| Ending balance, September 30, | $ | $ | |||||||||
The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2025 and 2024:
| Pension and Other Postretirement Plan Changes | |||||||||||
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Beginning balance, January 1, | $ | ($ | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ||||||||||
| Net other comprehensive income (loss) for the period | ( | ||||||||||
| Ending balance, September 30, | $ | $ | |||||||||
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The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the three months ended September 30, 2025 and 2024:
| Pension and Other Postretirement Plan Changes | |||||||||||
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Beginning balance, July 1, | $ | $ | |||||||||
| Amounts reclassified from accumulated other comprehensive income | ( | ( | |||||||||
| Net other comprehensive loss for the period | ( | ( | |||||||||
| Ending balance, September 30, | $ | $ | |||||||||
The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the nine months ended September 30, 2025 and 2024:
| Pension and Other Postretirement Plan Changes | |||||||||||
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Beginning balance, January 1, | $ | $ | |||||||||
| Amounts reclassified from accumulated other comprehensive income | ( | ( | |||||||||
| Net other comprehensive loss for the period | ( | ( | |||||||||
| Ending balance, September 30, | $ | $ | |||||||||
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the three months ended September 30, 2025 and 2024 are as follows:
| Amounts reclassified from AOCI | Income Statement Location | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| (In Thousands) | |||||||||||||||||
| Pension and other postretirement plan changes | |||||||||||||||||
| Amortization of prior service credit | $ | $ | (a) | ||||||||||||||
| Amortization of net gain | (a) | ||||||||||||||||
| Settlement loss | ( | (a) | |||||||||||||||
| Total amortization and settlement loss | |||||||||||||||||
| Income taxes | ( | ( | Income taxes | ||||||||||||||
| Total amortization and settlement loss (net of tax) | $ | $ | |||||||||||||||
| Total reclassifications for the period (net of tax) | $ | $ | |||||||||||||||
(a)These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.
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Notes to Financial Statements
Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the nine months ended September 30, 2025 and 2024 are as follows:
| Amounts reclassified from AOCI | Income Statement Location | ||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| (In Thousands) | |||||||||||||||||
| Pension and other postretirement plan changes | |||||||||||||||||
| Amortization of prior service credit | $ | $ | (a) | ||||||||||||||
| Amortization of net gain | (a) | ||||||||||||||||
| Settlement loss | ( | ( | (a) | ||||||||||||||
| Total amortization and settlement loss | ( | ||||||||||||||||
| Income taxes | ( | Income taxes | |||||||||||||||
Total amortization and settlement loss (net of tax) | $ | ($ | |||||||||||||||
| Total reclassifications for the period (net of tax) | $ | ($ | |||||||||||||||
(a)These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.
Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the three months ended September 30, 2025 and 2024 are as follows:
| Amounts reclassified from AOCI | Income Statement Location | |||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Pension and other postretirement plan changes | ||||||||||||||||||||
| Amortization of prior service credit | $ | $ | (a) | |||||||||||||||||
| Amortization of net gain | (a) | |||||||||||||||||||
| Settlement loss | ( | (a) | ||||||||||||||||||
Total amortization and settlement loss | ||||||||||||||||||||
| Income taxes | ( | ( | Income taxes | |||||||||||||||||
Total amortization and settlement loss (net of tax) | $ | $ | ||||||||||||||||||
| Total reclassifications for the period (net of tax) | $ | $ | ||||||||||||||||||
(a)These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.
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Notes to Financial Statements
Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the nine months ended September 30, 2025 and 2024 are as follows:
| Amounts reclassified from AOCI | Income Statement Location | |||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Pension and other postretirement plan changes | ||||||||||||||||||||
| Amortization of prior service credit | $ | $ | (a) | |||||||||||||||||
| Amortization of net gain | (a) | |||||||||||||||||||
| Settlement loss | ( | (a) | ||||||||||||||||||
Total amortization and settlement loss | ||||||||||||||||||||
| Income taxes | ( | ( | Income taxes | |||||||||||||||||
Total amortization and settlement loss (net of tax) | $ | $ | ||||||||||||||||||
| Total reclassifications for the period (net of tax) | $ | $ | ||||||||||||||||||
(a)These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.
NOTE 4. REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2030. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225 % of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. As there were no borrowings under the facility for the nine months ended September 30, 2025, the estimated interest rate as of September 30, 2025 that would have been applied to outstanding borrowings under the facility was 5.76 %. The following is a summary of the amounts outstanding and capacity available under the credit facility as of September 30, 2025:
| Capacity | Borrowings | Letters of Credit | Capacity Available | |||||||||||||||||
| (In Millions) | ||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||
Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65 % or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.
Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of September 30, 2025, Entergy Corporation had $1,398 million of commercial paper outstanding. The weighted-average interest rate for the nine months ended September 30, 2025 was 4.64 %.
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Notes to Financial Statements
Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of September 30, 2025 as follows:
| Company | Expiration Date | Amount of Facility | Interest Rate (a) | Amount Drawn as of September 30, 2025 | Letters of Credit Outstanding as of September 30, 2025 | |||||||||||||||||||||||||||
| Entergy Arkansas | April 2026 | $ | $ | $ | ||||||||||||||||||||||||||||
| Entergy Arkansas | June 2030 | $ | $ | $ | ||||||||||||||||||||||||||||
| Entergy Louisiana | June 2030 | $ | $ | $ | ||||||||||||||||||||||||||||
| Entergy Mississippi | June 2030 | $ | $ | $ | ||||||||||||||||||||||||||||
| Entergy New Orleans | June 2027 | $ | $ | $ | ||||||||||||||||||||||||||||
| Entergy Texas | June 2030 | $ | $ | $ | ||||||||||||||||||||||||||||
(a)The interest rate is the estimated interest rate as of September 30, 2025 that would have been applied to outstanding borrowings under the facility.
(b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option.
(c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $5 million for Entergy Mississippi; $10 million for Entergy New Orleans; and $25 million for Entergy Texas.
The commitment fees on the credit facilities range from 0.075 0.375 65
In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. The following is a summary of the uncommitted standby letter of credit facilities as of September 30, 2025:
| Company | Amount of Uncommitted Facility | Letter of Credit Fee | Letters of Credit Issued as of September 30, 2025 (a) | |||||||||||||||||
| Entergy Arkansas | $ | $ | ||||||||||||||||||
| Entergy Arkansas | $ | $ | ||||||||||||||||||
| Entergy Louisiana | $ | $ | ||||||||||||||||||
| Entergy Louisiana | $ | $ | ||||||||||||||||||
| Entergy Mississippi | $ | $ | ||||||||||||||||||
| Entergy Mississippi | $ | $ | ||||||||||||||||||
| Entergy New Orleans | $ | $ | ||||||||||||||||||
| Entergy Texas | $ | $ | ||||||||||||||||||
| Entergy Texas | $ | $ | ||||||||||||||||||
(a)As of September 30, 2025, letters of credit posted with MISO covered financial transmission rights exposure of $2.1 million for Entergy Arkansas, $0.5 million for Entergy Louisiana, and $1.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights.
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(b)As of September 30, 2025, the letters of credit issued for Entergy Mississippi include $60.9 million in MISO letters of credit and $1.3 million in non-MISO letters of credit outstanding under this facility.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy have FERC-authorized short-term borrowing limits effective through January 2027. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of September 30, 2025 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized | Borrowings | ||||||||||
| (In Millions) | |||||||||||
| Entergy Arkansas | $ | $ | |||||||||
| Entergy Louisiana | $ | $ | |||||||||
| Entergy Mississippi | $ | $ | |||||||||
| Entergy New Orleans | $ | $ | |||||||||
| Entergy Texas | $ | $ | |||||||||
| System Energy | $ | $ | |||||||||
Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)
See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of September 30, 2025:
| Company | Expiration Date | Amount of Facility | Weighted- Average Interest Rate on Borrowings (a) | Amount Outstanding as of September 30, 2025 | ||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||
| Entergy Arkansas VIE | June 2027 | $ | $ | |||||||||||||||||||||||
| Entergy Louisiana River Bend VIE | June 2027 | $ | $ | |||||||||||||||||||||||
| Entergy Louisiana Waterford VIE | June 2027 | $ | $ | |||||||||||||||||||||||
| System Energy VIE | June 2027 | $ | $ | |||||||||||||||||||||||
(a)Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company VIEs for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company VIE for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
The commitment fees on the credit facilities are 0.100 70
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Notes to Financial Statements
The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of September 30, 2025 as follows:
| Company | Description | Amount | ||||||||||||
| Entergy Arkansas VIE | $ | |||||||||||||
| Entergy Arkansas VIE | $ | |||||||||||||
| Entergy Louisiana River Bend VIE | $ | |||||||||||||
| Entergy Louisiana Waterford VIE | $ | |||||||||||||
| System Energy VIE | $ | |||||||||||||
In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense.
As of September 30, 2025, Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through January 2027 for issuances by its nuclear fuel company VIEs.
Debt Issuances and Retirements
(Entergy Corporation)
In September 2025, Entergy Corporation redeemed, at maturity, $800 million of 0.90 % Senior notes.
(Entergy Arkansas)
In May 2025, Entergy Arkansas issued $300 million of 5.45 % Series mortgage bonds due June 2034. Entergy Arkansas expects to use the proceeds, together with other funds, to finance the construction of Ironwood Power Station (formerly Lake Catherine Unit 5), and for general corporate purposes.
(Entergy Louisiana)
In January 2025, Entergy Louisiana issued $750 million of 5.80 % Series mortgage bonds due March 2055. Entergy Louisiana used the proceeds, together with other funds: (1) to repay, prior to maturity, its $190 million of 3.78 % Series mortgage bonds due April 2025; (2) to repay, prior to maturity, its $110 million of 3.78 % Series mortgage bonds due April 2025; (3) for capital expenditures; and (4) for general corporate purposes.
(Entergy Mississippi)
In March 2025, Entergy Mississippi issued $600 million of 5.80 % Series mortgage bonds due April 2055. Entergy Mississippi is using the proceeds, together with other funds, to finance a portion of the construction of the Delta Blues Advanced Power Station, the Delta Solar facility, and the Penton Solar facility, and for general corporate purposes.
(Entergy New Orleans)
In February 2025, Entergy New Orleans entered into a term loan credit agreement providing a $80 million unsecured term loan due March 2026. The term loan bore interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable adjustment. Entergy New Orleans received the funds in March 2025 and used the proceeds to repay, at maturity, its $78 million of 3.00 % Series mortgage bonds due March 2025, and for general corporate purposes. The term loan was subsequently repaid, prior to its maturity, in July 2025.
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(Entergy Texas)
In February 2025, Entergy Texas issued $500 million of 5.25 % Series mortgage bonds due April 2035. Entergy Texas expects to use the proceeds, together with other funds, to finance the construction of the Orange County Advanced Power Station and the Lone Star Power Station, and for general corporate purposes.
(System Energy)
In May 2025, System Energy issued $240 million of 5.30 % Series mortgage bonds due December 2034. System Energy used the proceeds, together with other funds, to repay, prior to maturity, its $200 million of 2.14 % Series mortgage bonds due December 2025, and for general corporate purposes.
Fair Value
The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of September 30, 2025 were as follows:
| Book Value of Long-Term Debt | Fair Value of Long-Term Debt (a) | ||||||||||
| (In Thousands) | |||||||||||
| Entergy | $ | $ | |||||||||
| Entergy Arkansas | $ | $ | |||||||||
| Entergy Louisiana | $ | $ | |||||||||
| Entergy Mississippi | $ | $ | |||||||||
| Entergy New Orleans | $ | $ | |||||||||
| Entergy Texas | $ | $ | |||||||||
| System Energy | $ | $ | |||||||||
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of December 31, 2024 were as follows:
| Book Value of Long-Term Debt | Fair Value of Long-Term Debt (a) | ||||||||||
| (In Thousands) | |||||||||||
| Entergy | $ | $ | |||||||||
| Entergy Arkansas | $ | $ | |||||||||
| Entergy Louisiana | $ | $ | |||||||||
| Entergy Mississippi | $ | $ | |||||||||
| Entergy New Orleans | $ | $ | |||||||||
| Entergy Texas | $ | $ | |||||||||
| System Energy | $ | $ | |||||||||
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
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NOTE 5. STOCK-BASED COMPENSATION (Entergy Corporation)
Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K. Awards under Entergy’s plans generally vest over three years.
Stock Options
In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of options on 366,136 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $17.43 per option. As of September 30, 2025, there were options on 2,946,252 shares of common stock outstanding with a weighted-average exercise price of $56.51 . The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of September 30, 2025. The aggregate intrinsic value of the stock options outstanding as of September 30, 2025 was $101.3 million.
The following table includes financial information for stock options for the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $ | $ | $ | $ | |||||||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $ | $ | $ | $ | |||||||||||||||||||
| Compensation cost capitalized as part of fixed assets and materials and supplies | $ | $ | $ | $ | |||||||||||||||||||
Other Equity Awards
In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of 510,009 restricted stock awards and 187,036 performance units under the 2019 Omnibus Incentive Plan. The restricted stock awards were made effective on February 6, 2025 and were valued at $82.79 per share, which was the closing price of Entergy Corporation’s common stock on the grant date. Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date.
The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. To emphasize the importance of environmental stewardship, specifically of carbon-free generation and resilience, an environmental achievement measure was selected as one of the performance measures for the 2025-2027 performance period. For the 2025-2027 performance period, performance will be measured based eighty percent on relative total shareholder return and twenty percent on the environmental achievement measure. The performance units were granted on February 6, 2025 and eighty percent were valued at $115.13 per share based on various factors, primarily market conditions; and twenty percent were valued at $82.79 per share, the closing price of Entergy Corporation’s common stock on the grant date. Performance units have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period, and compensation cost for the portion of the award based on the selected environmental achievement measure will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program.
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The following table includes financial information for other outstanding equity awards for the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||
| Compensation expense included in Entergy’s consolidated net income | $ | $ | $ | $ | |||||||||||||||||||
| Tax benefit recognized in Entergy’s consolidated net income | $ | $ | $ | $ | |||||||||||||||||||
| Compensation cost capitalized as part of fixed assets and materials and supplies | $ | $ | $ | $ | |||||||||||||||||||
NOTE 6. RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Components of Qualified Net Pension Cost
Entergy’s qualified pension costs, including amounts capitalized, for the third quarters of 2025 and 2024, included the following components:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Service cost - benefits earned during the period | $ | $ | |||||||||
| Interest cost on projected benefit obligation | |||||||||||
| Expected return on assets | ( | ( | |||||||||
| Recognized net loss | |||||||||||
| Settlement charges | |||||||||||
Asset transfer gain (a) | ( | ||||||||||
| Net pension cost | $ | $ | |||||||||
Entergy’s qualified pension costs, including amounts capitalized, for the nine months ended September 30, 2025 and 2024, included the following components:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Service cost - benefits earned during the period | $ | $ | |||||||||
| Interest cost on projected benefit obligation | |||||||||||
| Expected return on assets | ( | ( | |||||||||
| Recognized net loss | |||||||||||
| Settlement charges | |||||||||||
Asset transfer gain (a) | ( | ||||||||||
| Net pension cost | $ | $ | |||||||||
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Notes to Financial Statements
The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2025 and 2024, included the following components:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligation | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Recognized net loss | ||||||||||||||||||||||||||||||||||||||
| Settlement charges | ||||||||||||||||||||||||||||||||||||||
Asset transfer gain (a) | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net pension cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligation | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Recognized net loss | ||||||||||||||||||||||||||||||||||||||
| Net pension cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2025 and 2024, included the following components:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligation | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Recognized net loss | ||||||||||||||||||||||||||||||||||||||
| Settlement charges | ||||||||||||||||||||||||||||||||||||||
Asset transfer gain (a) | ( | ( | ||||||||||||||||||||||||||||||||||||
| Net pension cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
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| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligation | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Recognized net loss | ||||||||||||||||||||||||||||||||||||||
| Settlement charges | ||||||||||||||||||||||||||||||||||||||
| Net pension cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
(a) See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
Non-Qualified Net Pension Cost
Entergy recognized $6.1 million and $2.7 million in pension cost for its non-qualified pension plans for the third quarters of 2025 and 2024, respectively. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2025 were settlement charges of $3.6 million related to the payment of lump sum benefits out of the plan. In the third quarter of 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $11.1 million and $8.2 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2025 and 2024, respectively. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2025 were settlement charges of $3.6 million related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan.
The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for third quarters of 2025 and 2024:
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||
| 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2025 and 2024:
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||
| 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the third quarter of 2025, there were settlement charges of $215 thousand for Entergy Mississippi included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. For the third quarter of 2024, there were no 215 thousand for Entergy Mississippi included in the non-qualified pension costs above related to the payment
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of lump sum benefits out of the plan. For the nine months ended September 30, 2024, there were no
Components of Net Other Postretirement Benefits Cost (Income)
Entergy’s other postretirement benefits cost (income), including amounts capitalized, for the third quarters of 2025 and 2024, included the following components:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Service cost - benefits earned during the period | $ | $ | |||||||||
| Interest cost on accumulated postretirement benefit obligation (APBO) | |||||||||||
| Expected return on assets | ( | ( | |||||||||
| Amortization of prior service credit | ( | ( | |||||||||
| Recognized net gain | ( | ( | |||||||||
| Settlement credit | ( | ||||||||||
| Curtailment credit | ( | ||||||||||
Asset transfer loss (a) | |||||||||||
| Net other postretirement benefits cost (income) | $ | ($ | |||||||||
Entergy’s other postretirement benefits income, including amounts capitalized, for the nine months ended September 30, 2025 and 2024, included the following components:
| 2025 | 2024 | ||||||||||
| (In Thousands) | |||||||||||
| Service cost - benefits earned during the period | $ | $ | |||||||||
Interest cost on APBO | |||||||||||
| Expected return on assets | ( | ( | |||||||||
| Amortization of prior service credit | ( | ( | |||||||||
| Recognized net gain | ( | ( | |||||||||
| Settlement credit | ( | ||||||||||
| Curtailment credit | ( | ||||||||||
Asset transfer loss (a) | |||||||||||
| Net other postretirement benefits income | ($ | ($ | |||||||||
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The Registrant Subsidiaries’ other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the third quarters of 2025 and 2024 included the following components:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on APBO | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Recognized net (gain) loss | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Settlement credit | ( | ( | ||||||||||||||||||||||||||||||||||||
| Curtailment credit | ( | ( | ||||||||||||||||||||||||||||||||||||
Asset transfer (gain) loss (a) | ( | |||||||||||||||||||||||||||||||||||||
| Net other postretirement benefits cost (income) | ($ | ($ | ($ | $ | ($ | ($ | ||||||||||||||||||||||||||||||||
| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on APBO | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Recognized net (gain) loss | ( | |||||||||||||||||||||||||||||||||||||
| Net other postretirement benefits income | ($ | ($ | ($ | ($ | ($ | ($ | ||||||||||||||||||||||||||||||||
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The Registrant Subsidiaries’ other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the nine months ended September 30, 2025 and 2024 included the following components:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on APBO | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Recognized net (gain) loss | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Settlement credit | ( | ( | ||||||||||||||||||||||||||||||||||||
| Curtailment credit | ( | ( | ||||||||||||||||||||||||||||||||||||
Asset transfer (gain) loss (a) | ( | |||||||||||||||||||||||||||||||||||||
| Net other postretirement benefits cost (income) | ($ | ($ | ($ | $ | ($ | ($ | ||||||||||||||||||||||||||||||||
| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Interest cost on APBO | ||||||||||||||||||||||||||||||||||||||
| Expected return on assets | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Recognized net (gain) loss | ( | |||||||||||||||||||||||||||||||||||||
| Net other postretirement benefits income | ($ | ($ | ($ | ($ | ($ | ($ | ||||||||||||||||||||||||||||||||
(a) See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
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Reclassification out of Accumulated Other Comprehensive Income (Loss)
Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2025 and 2024:
| 2025 | Qualified Pension Costs | Other Postretirement Costs | Non-Qualified Pension Costs | Total | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| Entergy | ||||||||||||||||||||||||||
| Amortization of prior service credit (cost) | $ | $ | ($ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| Settlement loss | ( | ( | ( | |||||||||||||||||||||||
| ($ | $ | ($ | $ | |||||||||||||||||||||||
| Entergy Louisiana | ||||||||||||||||||||||||||
| Amortization of prior service credit | $ | $ | $ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | |||||||||||||||||||||||||
| Settlement loss | ( | ( | ||||||||||||||||||||||||
| ($ | $ | $ | $ | |||||||||||||||||||||||
| 2024 | Qualified Pension Costs | Other Postretirement Costs | Non-Qualified Pension Costs | Total | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| Entergy | ||||||||||||||||||||||||||
| Amortization of prior service credit (cost) | $ | $ | ($ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| ($ | $ | ($ | $ | |||||||||||||||||||||||
| Entergy Louisiana | ||||||||||||||||||||||||||
| Amortization of prior service credit | $ | $ | $ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | |||||||||||||||||||||||||
| ($ | $ | $ | $ | |||||||||||||||||||||||
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Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2025 and 2024:
| 2025 | Qualified Pension Costs | Other Postretirement Costs | Non-Qualified Pension Costs | Total | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| Entergy | ||||||||||||||||||||||||||
| Amortization of prior service credit (cost) | $ | $ | ($ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| Settlement loss | ( | ( | ( | |||||||||||||||||||||||
| ($ | $ | ($ | $ | |||||||||||||||||||||||
| Entergy Louisiana | ||||||||||||||||||||||||||
| Amortization of prior service credit | $ | $ | $ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| Settlement loss | ( | ( | ||||||||||||||||||||||||
| ($ | $ | ($ | $ | |||||||||||||||||||||||
| 2024 | Qualified Pension Costs | Other Postretirement Costs | Non-Qualified Pension Costs | Total | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| Entergy | ||||||||||||||||||||||||||
| Amortization of prior service credit (cost) | $ | $ | ($ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| Settlement loss | ( | ( | ||||||||||||||||||||||||
| ($ | $ | ($ | ($ | |||||||||||||||||||||||
| Entergy Louisiana | ||||||||||||||||||||||||||
| Amortization of prior service credit | $ | $ | $ | $ | ||||||||||||||||||||||
| Amortization of net gain (loss) | ( | ( | ||||||||||||||||||||||||
| ($ | $ | ($ | $ | |||||||||||||||||||||||
Accounting for Pension and Other Postretirement Benefits
In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.
Qualified Pension Settlement Costs
The Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees were remeasured with the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025, resulting in settlement charges of $12.1 million as a result of ongoing payments of lump sum benefits from the plans and settlement charges of $11.8 million as a result of the sale. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and
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incurred settlement costs. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025.
In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Similar to other pension costs, the settlement costs were included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.
In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, to track the surplus or deficit in the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded are evaluated in each rate case filed by Entergy Texas and an amortization period is determined at that time.
See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.
Employer Contributions
Based on current assumptions, Entergy expects to contribute $240 million to its qualified pension plans in 2025. As of September 30, 2025, Entergy had contributed $147.6 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2025:
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | ||||||||||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||||||||||||||
| Expected 2025 pension contributions | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Pension contributions made through September 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Remaining estimated pension contributions to be made in 2025 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
NOTE 7. BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and included operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments.
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The following table includes operating revenues and significant expense categories regularly provided to the chief operating decision maker for the Utility segment, a reconciliation of Utility operating revenues to Entergy’s consolidated operating revenues, and a reconciliation of Utility net income to consolidated net income and net income attributable to Entergy Corporation for the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Thousands) | (In Thousands) | |||||||||||||||||||||||||
| Utility operating revenues | $ | $ | $ | $ | ||||||||||||||||||||||
| Reconciliation of revenues: | ||||||||||||||||||||||||||
| Other revenues (a) | ||||||||||||||||||||||||||
| Elimination of intersegment revenues | ( | ( | ( | ( | ||||||||||||||||||||||
| Consolidated operating revenues | ||||||||||||||||||||||||||
| Less Utility expenses and other items: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Other operation and maintenance expenses | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | ( | ( | |||||||||||||||||||||||
| Other Utility items (b) | ||||||||||||||||||||||||||
| Utility net income | ||||||||||||||||||||||||||
| Reconciliation of net income: | ||||||||||||||||||||||||||
| Non-cash pension settlement charge (c) | — | — | — | ( | ||||||||||||||||||||||
| Income taxes on reconciling item noted above | ||||||||||||||||||||||||||
| Other loss | ( | ( | ( | ( | ||||||||||||||||||||||
| Elimination of intersegment loss | ( | ( | ( | ( | ||||||||||||||||||||||
| Consolidated net income | ||||||||||||||||||||||||||
| Preferred dividend requirements of subsidiaries and noncontrolling interests (d) | ||||||||||||||||||||||||||
| Net income attributable to Entergy Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
(a)See Note 12 to the financial statements herein and Note 19 to the financial statements in the Form 10-K for discussion of other revenues.
(b)Other Utility items includes nuclear refueling outage expenses, asset write-offs, decommissioning expenses, taxes other than income taxes, depreciation and amortization expenses, other income, interest expense, and income tax expense.
(c)See Note 11 to the financial statements in the Form 10-K for discussion of the one-time non-cash pension settlement charge resulting from a group annuity contract purchased in second quarter 2024 to settle certain pension liabilities, of which $8 million was recorded at Utility and $317 million was recorded at Parent & Other.
(d)Preferred dividend requirements of subsidiaries and noncontrolling interests is substantially derived from the Utility segment. See Note 6 to the financial statements in the Form 10-K for discussion of preferred stock and noncontrolling interests.
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The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the three months ended September 30, 2025 and 2024:
| Utility | Parent & Other | Eliminations | Consolidated | |||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | $ | $ | $ | $ | ||||||||||||||||||||||
| Depreciation, amortization, and decommissioning | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest and investment income | $ | $ | ($ | $ | ||||||||||||||||||||||
| Interest expense | $ | $ | ($ | $ | ||||||||||||||||||||||
| Income taxes | $ | ($ | $ | $ | ||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| Depreciation, amortization, and decommissioning | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest and investment income | $ | $ | ($ | $ | ||||||||||||||||||||||
| Interest expense | $ | $ | $ | $ | ||||||||||||||||||||||
| Income taxes | $ | ($ | $ | $ | ||||||||||||||||||||||
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The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the nine months ended September 30, 2025 and 2024:
| Utility | Parent & Other | Eliminations | Consolidated | |||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | $ | $ | $ | $ | ||||||||||||||||||||||
| Depreciation, amortization, and decommissioning | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest and investment income | $ | $ | ($ | $ | ||||||||||||||||||||||
| Interest expense | $ | $ | ($ | $ | ||||||||||||||||||||||
| Income taxes | $ | ($ | $ | $ | ||||||||||||||||||||||
| Total assets as of September 30, 2025 | $ | $ | ($ | $ | ||||||||||||||||||||||
| Total expenditures for additions to long-lived assets | $ | $ | $ | $ | ||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| Asset write-offs, impairments, and related charges (credits) | $ | $ | $ | $ | ||||||||||||||||||||||
| Depreciation, amortization, and decommissioning | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest and investment income | $ | $ | ($ | $ | ||||||||||||||||||||||
| Interest expense | $ | $ | ($ | $ | ||||||||||||||||||||||
| Income taxes | $ | ($ | $ | $ | ||||||||||||||||||||||
| Total assets as of December 31, 2024 | $ | $ | ($ | $ | ||||||||||||||||||||||
| Total expenditures for additions to long-lived assets | $ | $ | $ | $ | ||||||||||||||||||||||
Eliminations are primarily intersegment activity. All of Entergy’s goodwill is related to the Utility segment.
Registrant Subsidiaries
Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one operating and reportable segment, an integrated utility business which includes the generation, transmission, and distribution of electric power; and included operation of a small natural gas distribution business at each of Entergy Louisiana and Entergy New Orleans through June 30, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. System Energy has one operating and reportable segment, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations are managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. All segment financial information for the Registrant Subsidiaries is as reported on the respective financial statements for each of the Registrant Subsidiaries.
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NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Market Risk
In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk associated with the price of fuel.
The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use commodity and financial instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs, that are recovered from customers.
Derivatives
Entergy designates a significant portion of its derivative instruments as normal purchase/normal sale transactions due to their physical settlement provisions, including power purchase and sales agreements, fuel purchase agreements, and capacity contracts. Certain derivative instruments do not qualify for designation as normal purchase/normal sale transactions due to their financial settlement provisions. See further discussion below regarding the accounting for these derivative instruments.
Entergy manages fuel price volatility for Entergy Louisiana and Entergy Mississippi through the purchase of natural gas swaps that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi. The maximum length of time over which Entergy has executed natural gas swaps as of September 30, 2025 is 6 10,249,700 no outstanding natural gas swaps. Credit support for these natural gas swaps is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. Prior to the sale of the Entergy New Orleans natural gas distribution business, Entergy also managed fuel price volatility related to projected winter purchases for gas distribution at Entergy New Orleans through the purchase of natural gas swaps. See Note 13 to the financial statements herein for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025.
During the second quarter 2025, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2025 through May 31, 2026. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of September 30, 2025 is 72,481 GWh for Entergy, including 15,442 GWh for Entergy Arkansas, 38,388 GWh for Entergy Louisiana, 8,133 GWh for Entergy Mississippi, 2,634 GWh for Entergy New Orleans, and 7,884 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating
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company as required by MISO. Credit support for financial transmission rights held by Entergy’s non-utility operations business is covered by cash. No
The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of September 30, 2025 and December 31, 2024 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
| Instrument | Balance Sheet Location | Gross Fair Value (a) | Offsetting Position (b) | Net Fair Value (c) (d) | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Natural gas swaps | Other current liabilities | $ | $ | $ | ||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Natural gas swaps | Prepayments and other | $ | $ | $ | ||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Financial transmission rights | Other current liabilities | ($ | $ | $ | ||||||||||||||||||||||
(a)Represents the gross amounts of recognized assets/liabilities
(b)Represents the netting of fair value balances with the same counterparty
(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets
(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $4 million as of September 30, 2025 and $2 million as of December 31, 2024
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The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended September 30, 2025 and 2024 are as follows:
| Instrument | Income Statement Location | Amount of gain (loss) recorded in the income statement | ||||||||||||
| (In Millions) | ||||||||||||||
| 2025 | ||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | (a) | ($ | |||||||||||
| Financial transmission rights | Purchased power expense | (b) | $ | |||||||||||
| 2024 | ||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | (a) | ($ | |||||||||||
| Financial transmission rights | Purchased power expense | (b) | $ | |||||||||||
The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the nine months ended September 30, 2025 and 2024 are as follows:
| Instrument | Income Statement Location | Amount of gain (loss) recorded in the income statement | ||||||||||||
| (In Millions) | ||||||||||||||
| 2025 | ||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | (a) | ($ | |||||||||||
| Financial transmission rights | Purchased power expense | (b) | $ | |||||||||||
| 2024 | ||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | (a) | ($ | |||||||||||
| Financial transmission rights | Purchased power expense | (b) | $ | |||||||||||
(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
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The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of September 30, 2025 and December 31, 2024 are shown in the tables below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
| Instrument | Balance Sheet Location | Gross Fair Value (a) | Offsetting Position (b) | Net Fair Value (c) (d) | Registrant | |||||||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | $ | $ | Entergy Arkansas | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | Entergy Louisiana | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | $ | $ | Entergy Mississippi | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | $ | $ | Entergy New Orleans | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | Entergy Texas | |||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Natural gas swaps | Other current liabilities | $ | $ | $ | Entergy Mississippi | |||||||||||||||||||||||||||
| Instrument | Balance Sheet Location | Gross Fair Value (a) | Offsetting Position (b) | Net Fair Value (c) (d) | Registrant | |||||||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Natural gas swaps | Prepayments and other | $ | $ | $ | Entergy Mississippi | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | Entergy Arkansas | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | Entergy Louisiana | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | $ | $ | Entergy New Orleans | |||||||||||||||||||||||||||
| Financial transmission rights | Prepayments and other | $ | ($ | $ | Entergy Texas | |||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Financial transmission rights | Other current liabilities | ($ | $ | $ | Entergy Mississippi | |||||||||||||||||||||||||||
(a)Represents the gross amounts of recognized assets/liabilities
(b)Represents the netting of fair value balances with the same counterparty
(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $2.1 million for Entergy Arkansas, $0.5 million for Entergy Louisiana, and $1.2 million for Entergy
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Mississippi as of September 30, 2025 and in the amount of $0.5 million for Entergy Arkansas, $0.1 million for Entergy Louisiana, $0.8 million for Entergy Mississippi, $0.1 million for Entergy New Orleans, and $0.3 million for Entergy Texas as of December 31, 2024
The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the three months ended September 30, 2025 and 2024 are as follows:
| Instrument | Income Statement Location | Amount of gain (loss) recorded in the income statement | Registrant | |||||||||||||||||
| (In Millions) | ||||||||||||||||||||
| 2025 | ||||||||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | ($ | (a) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Arkansas | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Louisiana | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy New Orleans | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Texas | ||||||||||||||||
| 2024 | ||||||||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | $ | (a) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Arkansas | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Louisiana | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy New Orleans | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Texas | ||||||||||||||||
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The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the nine months ended September 30, 2025 and 2024 are as follows:
| Instrument | Income Statement Location | Amount of gain (loss) recorded in the income statement | Registrant | |||||||||||||||||
| (In Millions) | ||||||||||||||||||||
| 2025 | ||||||||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | ($ | (a) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Arkansas | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Louisiana | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy New Orleans | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Texas | ||||||||||||||||
| 2024 | ||||||||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | $ | (a) | Entergy Mississippi | ||||||||||||||||
| Natural gas swaps | Fuel, fuel-related expenses, and gas purchased for resale | $ | (a) | Entergy New Orleans | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Arkansas | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Louisiana | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Mississippi | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy New Orleans | ||||||||||||||||
| Financial transmission rights | Purchased power expense | $ | (b) | Entergy Texas | ||||||||||||||||
(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Fair Values
The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments.
Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market
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participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value.
Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs.
The three levels of the fair value hierarchy are:
•Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas swaps traded on exchanges with active markets. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase.
•Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following:
–quoted prices for similar assets or liabilities in active markets;
–quoted prices for identical assets or liabilities in inactive markets;
–inputs other than quoted prices that are observable for the asset or liability; or
–inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 2 consists primarily of individually-owned debt instruments and gas swaps valued using observable inputs.
•Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights.
The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight. The values are calculated internally and verified against the data published by MISO. Entergy’s Accounting group reviews these valuations for reasonableness, with the assistance of others within the organization with knowledge of the various inputs and assumptions used in the valuation. The Office of Corporate Risk Oversight reports to the Vice President and Treasurer. The Accounting group reports to the Chief Accounting Officer.
The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2025 and December 31, 2024. The
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assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Securitization recovery trust account | ||||||||||||||||||||||||||
| Storm reserve escrow accounts | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Natural gas swaps | $ | $ | $ | $ | ||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Securitization recovery trust account | ||||||||||||||||||||||||||
| Storm reserve escrow accounts | ||||||||||||||||||||||||||
| Natural gas swaps | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Financial transmission rights | $ | $ | $ | $ | ||||||||||||||||||||||
(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.
(b)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.
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The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2025 and 2024:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Balance as of July 1, | $ | $ | |||||||||
| Gains included as a regulatory liability/asset | |||||||||||
| Settlements | ( | ( | |||||||||
Balance as of September 30, | $ | $ | |||||||||
The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2025 and 2024:
| 2025 | 2024 | ||||||||||||||||
| (In Millions) | |||||||||||||||||
| Balance as of January 1, | $ | $ | |||||||||||||||
| Issuances of financial transmission rights | |||||||||||||||||
Gains included as a regulatory liability/asset | |||||||||||||||||
| Settlements | ( | ( | |||||||||||||||
Balance as of September 30, | $ | $ | |||||||||||||||
The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO.
The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2025 and December 31, 2024. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.
Entergy Arkansas
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
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| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
Entergy Louisiana
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Storm reserve escrow account | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| Storm reserve escrow account | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
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Entergy Mississippi
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Natural gas swaps | $ | $ | $ | $ | ||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Natural gas swaps | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Financial transmission rights | $ | $ | $ | $ | ||||||||||||||||||||||
Entergy New Orleans
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Storm reserve escrow account | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Securitization recovery trust account | ||||||||||||||||||||||||||
| Storm reserve escrow account | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
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Entergy Texas
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
| Securitization recovery trust account | $ | $ | $ | $ | ||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Securitization recovery trust account | ||||||||||||||||||||||||||
| Financial transmission rights | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
System Energy
| 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
| 2024 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Temporary cash investments | $ | $ | $ | $ | ||||||||||||||||||||||
| Decommissioning trust funds (a): | ||||||||||||||||||||||||||
| Equity securities | ||||||||||||||||||||||||||
| Debt securities | ||||||||||||||||||||||||||
| Common trusts (b) | ||||||||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||||
(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.
(b)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.
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The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2025.
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||
Balance as of July 1, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gains included as a regulatory liability/asset | |||||||||||||||||||||||||||||
| Settlements | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of September 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2024.
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||
Balance as of July 1, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Gains (losses) included as a regulatory liability/asset | ( | ||||||||||||||||||||||||||||
| Settlements | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of September 30, 2024 | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||
The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2025.
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||
Balance as of January 1, 2025 | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||
| Issuances of financial transmission rights | |||||||||||||||||||||||||||||
| Gains included as a regulatory liability/asset | |||||||||||||||||||||||||||||
| Settlements | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of September 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
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Notes to Financial Statements
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2024.
| Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||
Balance as of January 1, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Issuances of financial transmission rights | |||||||||||||||||||||||||||||
| Gains (losses) included as a regulatory liability/asset | ( | ||||||||||||||||||||||||||||
| Settlements | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance as of September 30, 2024 | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||
NOTE 9. DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)
The NRC requires certain of the Utility operating companies and System Energy to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1 and 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.
Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30 % interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other long-term liabilities on the consolidated balance sheets of Entergy and Entergy Louisiana for the unrealized trust earnings not currently expected to be needed to decommission the plant. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.
The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2025 on equity securities still held as of September 30, 2025 were $277 million and $435 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.
The available-for-sale debt securities held as of September 30, 2025 and December 31, 2024 are summarized as follows:
| 2025 | 2024 | |||||||||||||
| (In Millions) | ||||||||||||||
| Fair value | $ | $ | ||||||||||||
| Unrealized gains | $ | $ | ||||||||||||
| Unrealized losses | $ | $ | ||||||||||||
As of September 30, 2025 and December 31, 2024, there were no 2,173 million as of September 30, 2025 and $2,121 million as of December 31, 2024. As of September 30, 2025, available-for-sale debt securities had an
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average coupon rate of approximately 4.16 %, an average duration of approximately 6.36 years, and an average maturity of approximately 10.65 years.
The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2025 and December 31, 2024:
| 2025 | 2024 | |||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Less than 12 months | $ | $ | $ | $ | ||||||||||||||||||||||
| More than 12 months | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2025 and December 31, 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Less than 1 year | $ | $ | |||||||||
| 1 year - 5 years | |||||||||||
| 5 years - 10 years | |||||||||||
| 10 years - 15 years | |||||||||||
| 15 years - 20 years | |||||||||||
| 20 years+ | |||||||||||
| Total | $ | $ | |||||||||
The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Proceeds from disposition of securities | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized gains | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized losses | $ | $ | $ | $ | ||||||||||||||||||||||
During the three and nine months ended September 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.
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Entergy Arkansas
Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2025 and December 31, 2024 are summarized as follows:
| 2025 | 2024 | |||||||||||||
| (In Millions) | ||||||||||||||
| Fair value | $ | $ | ||||||||||||
| Unrealized gains | $ | $ | ||||||||||||
| Unrealized losses | $ | $ | ||||||||||||
The amortized cost of available-for-sale debt securities was $615.8 million as of September 30, 2025 and $603.5 million as of December 31, 2024. As of September 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 3.85 %, an average duration of approximately 6.39 years, and an average maturity of approximately 8.70 years.
The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2025 on equity securities still held as of September 30, 2025 were $79.9 million and $123.6 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.
The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2025 and December 31, 2024:
| 2025 | 2024 | |||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Less than 12 months | $ | $ | $ | $ | ||||||||||||||||||||||
| More than 12 months | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2025 and December 31, 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Less than 1 year | $ | $ | |||||||||
| 1 year - 5 years | |||||||||||
| 5 years - 10 years | |||||||||||
| 10 years - 15 years | |||||||||||
| 15 years - 20 years | |||||||||||
| 20 years+ | |||||||||||
| Total | $ | $ | |||||||||
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The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Proceeds from disposition of securities | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized gains | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized losses | $ | $ | $ | $ | ||||||||||||||||||||||
During three and nine months ended September 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.
Entergy Louisiana
Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2025 and December 31, 2024 are summarized as follows:
| 2025 | 2024 | |||||||||||||
| (In Millions) | ||||||||||||||
| Fair value | $ | $ | ||||||||||||
| Unrealized gains | $ | $ | ||||||||||||
| Unrealized losses | $ | $ | ||||||||||||
The amortized cost of available-for-sale debt securities was $954.8 million as of September 30, 2025 and $931.5 million as of December 31, 2024. As of September 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.40 %, an average duration of approximately 6.33 years, and an average maturity of approximately 12.30 years.
The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2025 on equity securities still held as of September 30, 2025 were $120.7 million and $192.9 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.
The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2025 and December 31, 2024:
| 2025 | 2024 | |||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Less than 12 months | $ | $ | $ | $ | ||||||||||||||||||||||
| More than 12 months | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
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The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2025 and December 31, 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Less than 1 year | $ | $ | |||||||||
| 1 year - 5 years | |||||||||||
| 5 years - 10 years | |||||||||||
| 10 years - 15 years | |||||||||||
| 15 years - 20 years | |||||||||||
| 20 years+ | |||||||||||
| Total | $ | $ | |||||||||
The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Proceeds from disposition of securities | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized gains | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized losses | $ | $ | $ | $ | ||||||||||||||||||||||
During the three and nine months ended September 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.
System Energy
System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2025 and December 31, 2024 are summarized as follows:
| 2025 | 2024 | |||||||||||||
| (In Millions) | ||||||||||||||
| Fair value | $ | $ | ||||||||||||
| Unrealized gains | $ | $ | ||||||||||||
| Unrealized losses | $ | $ | ||||||||||||
The amortized cost of available-for-sale debt securities was $602.8 million as of September 30, 2025 and $585.5 million as of December 31, 2024. As of September 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.11 %, an average duration of approximately 6.38 years, and an average maturity of approximately 10.01 years.
The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2025 on equity securities still held as of September 30, 2025 were $76.4 million and $118.8 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.
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The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2025 and December 31, 2024:
| 2025 | 2024 | |||||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Less than 12 months | $ | $ | $ | $ | ||||||||||||||||||||||
| More than 12 months | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
The fair value of available-for-sale debt securities, summarized by contractual maturities, as of September 30, 2025 and December 31, 2024 were as follows:
| 2025 | 2024 | ||||||||||
| (In Millions) | |||||||||||
| Less than 1 year | $ | $ | |||||||||
| 1 year - 5 years | |||||||||||
| 5 years - 10 years | |||||||||||
| 10 years - 15 years | |||||||||||
| 15 years - 20 years | |||||||||||
| 20 years+ | |||||||||||
| Total | $ | $ | |||||||||
The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Millions) | ||||||||||||||||||||||||||
| Proceeds from disposition of securities | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized gains | $ | $ | $ | $ | ||||||||||||||||||||||
| Realized losses | $ | $ | $ | $ | ||||||||||||||||||||||
During the three and nine months ended September 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.
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NOTE 10. INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
See “Income Tax Audits” and “Other Tax Matters” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion.
Other Tax Matters
Inflation Reduction Act of 2022
As discussed in the Note 3 to the financial statements in the Form 10-K, the Inflation Reduction Act, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power facilities. Entergy Arkansas, Entergy Louisiana, and System Energy have the potential to generate zero-emission nuclear power production tax credits for electricity generated by their respective nuclear power facilities. Due to the uncertainty of the value, if any, of production tax credits Entergy Arkansas, Entergy Louisiana, or System Energy may receive, such credits for the nuclear power produced in 2024 were not recognized as of December 31, 2024.
In second quarter 2025, Entergy, Entergy Arkansas, Entergy Louisiana, and System Energy determined, based on current analysis and evolving regulatory developments, that it was appropriate to record zero-emission nuclear production tax credits under Internal Revenue Code section 45U for electricity generated in 2024 by their respective nuclear power facilities. Such credits have been claimed on the Entergy 2024 federal income tax return. Because the U.S. Treasury and the IRS have not issued final guidance regarding the application of Internal Revenue Code section 45U, including the definition of “gross receipts,” Entergy treated the full amount of the Internal Revenue Code section 45U credits as an uncertain tax position in accordance with the income tax accounting standards.
The value of the nuclear production tax credits was calculated based on the amount of electricity generated and sold by each nuclear generating unit owned by Entergy Arkansas, Entergy Louisiana, and System Energy during 2024, multiplied by the applicable credit rate (i.e. dollars per kWh). The applicable credit rate included the incremental amount of credit for meeting the “prevailing wages” criteria under the Inflation Reduction Act. Entergy also applied the statutorily required reduction amount in arriving at the value of the nuclear production tax credits. This reduction amount was driven by the “gross receipts” received by each unit for its 2024 energy production. Entergy Arkansas, Entergy Louisiana, and System Energy recognized nuclear production tax credits of $221.4 million, $208.9 million, and $140.9 million, respectively, resulting in Entergy consolidated nuclear production tax credits of $571.2 million recognized in second quarter 2025. To the extent future guidance allows Entergy to realize the value of the credits under the provisions of income tax accounting standards, the monetized value of the production tax credits, net of applicable expenses, is expected to be shared with customers.
In September 2025, Entergy Arkansas, Entergy Louisiana, and System Energy transferred nuclear production tax credits to third parties and received cash of $155.1 million, $146.4 million, and $98.7 million, respectively, resulting in total Entergy cash receipts of $400.2 million. The proceeds from the transfers reflected a market-based discount. In addition, Entergy Arkansas sold its solar production tax credits to a third party and received cash receipts of approximately $5.1 million. Entergy Arkansas, Entergy Louisiana, System Energy, and the relevant affiliates, as necessary, have submitted filings or are preparing to file with the FERC and their respective retail regulators to determine a fair and reasonable approach, including risk-sharing and timing, to incorporate the net cash proceeds received for nuclear production tax credits into future customer rates, particularly in light of the related provision for the uncertain tax position. In August 2025 the LPSC issued an order approving an agreement between Entergy Louisiana and the LPSC staff regarding the monetization of 2024 nuclear production tax credits. The order allows Entergy Louisiana to retain the net proceeds of the nuclear production tax credits while the associated tax position remains uncertain. While it retains the net proceeds, Entergy Louisiana will accrue
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a liability to its customers at its weighted average cost of capital. It further provides that customers will be responsible for the associated costs should the IRS reduce some or all of the value of the nuclear production tax credits transferred to third parties. Once the IRS makes a final determination affirming the value of the nuclear production tax credits or the audit period expires without the IRS making a final determination disallowing some or all of the value of the nuclear production tax credits, Entergy Louisiana will commence flowing to its customers the value of the nuclear production tax credits, including carrying charges. Entergy will continue to monitor further developments and reassess the uncertain tax position as additional guidance or other information emerges.
Additional cash receipts for the transfer of the remaining 2024 nuclear production tax credits to third parties were received in October 2025 of $55 million, $51.9 million, and $35.1 million by Entergy Arkansas, Entergy Louisiana, and System Energy, respectively, resulting in additional Entergy cash receipts of $142 million. The proceeds from these transfers also reflected a market-based discount.
Sale of Natural Gas Distribution Businesses
See Note 13 to the financial statements herein for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. Entergy recognized a gain of approximately $327 million for tax purposes, with Entergy Louisiana and Entergy New Orleans recognizing $148 million and $179 million, respectively. Both Entergy and Entergy Louisiana have sufficient federal tax net operating loss carryforwards to offset their respective gains. Accordingly, Entergy does not have a resulting federal income tax obligation as a result of the transaction, nor will Entergy Louisiana be required to make a federal tax payment under the terms of the intercompany income tax allocation agreement. Entergy New Orleans is expected to fully absorb its federal tax net operating loss carryforward in 2025, and its resulting federal tax payment under the intercompany income tax allocation agreement will be dependent on its results of operations for the entire year. Estimated state tax payments for Entergy, Entergy Louisiana, and Entergy New Orleans are not anticipated to be significant.
NOTE 11. VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities (VIEs). See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities, commercial paper borrowings, and long-term debt. See Note 6 to the financial statements in the Form 10-K for discussion of noncontrolling interests.
Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of September 30, 2025 and December 31, 2024, the primary asset held by the storm trust I was $2.8 billion and $2.9 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust I is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $28.5 million as of September 30, 2025 and $28.8 million as of December 31, 2024.
Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of September 30, 2025 and December 31, 2024, the primary asset held by the storm trust II was $1.3 billion and $1.4 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust II is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $14.4 million as of September 30, 2025 and $13.9 million as of December 31, 2024.
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System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest in the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $17.2
AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of September 30, 2025, AR Searcy Partnership, LLC recorded assets equal to $126.7 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $114.1 million. As of December 31, 2024, AR Searcy Partnership, LLC recorded assets equal to $129.7 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $113.2 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Arkansas.
MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of September 30, 2025, MS Sunflower Partnership, LLC recorded assets equal to $155.4 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $136 million. As of December 31, 2024, MS Sunflower Partnership, LLC recorded assets equal to $157.8 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $132.7 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Mississippi.
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NOTE 12. REVENUE (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)
Operating Revenues
See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended September 30, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||
| Utility: | |||||||||||||||||||||||
| Residential | $ | $ | |||||||||||||||||||||
| Commercial | |||||||||||||||||||||||
| Industrial | |||||||||||||||||||||||
| Governmental | |||||||||||||||||||||||
| Total billed retail | |||||||||||||||||||||||
| Sales for resale (a) | |||||||||||||||||||||||
| Other electric revenues (b) | ( | ||||||||||||||||||||||
| Revenues from contracts with customers | |||||||||||||||||||||||
| Other Utility revenues (c) | |||||||||||||||||||||||
| Electric revenues | |||||||||||||||||||||||
| Natural gas revenues | |||||||||||||||||||||||
| Other revenues (d) | |||||||||||||||||||||||
| Total operating revenues | $ | $ | |||||||||||||||||||||
Entergy’s total revenues for the nine months ended September 30, 2025 and 2024 were as follows:
| 2025 | 2024 | ||||||||||||||||||||||
| (In Thousands) | |||||||||||||||||||||||
| Utility: | |||||||||||||||||||||||
| Residential | $ | $ | |||||||||||||||||||||
| Commercial | |||||||||||||||||||||||
| Industrial | |||||||||||||||||||||||
| Governmental | |||||||||||||||||||||||
| Total billed retail | |||||||||||||||||||||||
| Sales for resale (a) | |||||||||||||||||||||||
| Other electric revenues (b) | |||||||||||||||||||||||
| Revenues from contracts with customers | |||||||||||||||||||||||
| Other Utility revenues (c) | |||||||||||||||||||||||
| Electric revenues | |||||||||||||||||||||||
| Natural gas revenues | |||||||||||||||||||||||
| Other revenues (d) | |||||||||||||||||||||||
| Total operating revenues | $ | $ | |||||||||||||||||||||
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The Utility operating companies’ total revenues for the three months ended September 30, 2025 and 2024 were as follows:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||
| Industrial | ||||||||||||||||||||||||||||||||
| Governmental | ||||||||||||||||||||||||||||||||
| Total billed retail | ||||||||||||||||||||||||||||||||
| Sales for resale (a) | ||||||||||||||||||||||||||||||||
| Other electric revenues (b) | ( | |||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ||||||||||||||||||||||||||||||||
| Other revenues (c) | ( | |||||||||||||||||||||||||||||||
| Electric revenues | ||||||||||||||||||||||||||||||||
| Natural gas revenues | ||||||||||||||||||||||||||||||||
| Total operating revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||
| Industrial | ||||||||||||||||||||||||||||||||
| Governmental | ||||||||||||||||||||||||||||||||
| Total billed retail | ||||||||||||||||||||||||||||||||
| Sales for resale (a) | ||||||||||||||||||||||||||||||||
| Other electric revenues (b) | ( | |||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ||||||||||||||||||||||||||||||||
| Other revenues (c) | ||||||||||||||||||||||||||||||||
| Electric revenues | ||||||||||||||||||||||||||||||||
| Natural gas revenues | ||||||||||||||||||||||||||||||||
| Total operating revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
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Entergy Corporation and Subsidiaries
Notes to Financial Statements
The Utility operating companies’ total revenues for the nine months ended September 30, 2025 and 2024 were as follows:
| 2025 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||
| Industrial | ||||||||||||||||||||||||||||||||
| Governmental | ||||||||||||||||||||||||||||||||
| Total billed retail | ||||||||||||||||||||||||||||||||
| Sales for resale (a) | ||||||||||||||||||||||||||||||||
| Other electric revenues (b) | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ||||||||||||||||||||||||||||||||
| Other revenues (c) | ( | |||||||||||||||||||||||||||||||
| Electric revenues | ||||||||||||||||||||||||||||||||
| Natural gas revenues | ||||||||||||||||||||||||||||||||
| Total operating revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| 2024 | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | |||||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| Residential | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||
| Industrial | ||||||||||||||||||||||||||||||||
| Governmental | ||||||||||||||||||||||||||||||||
| Total billed retail | ||||||||||||||||||||||||||||||||
| Sales for resale (a) | ||||||||||||||||||||||||||||||||
| Other electric revenues (b) | ||||||||||||||||||||||||||||||||
| Revenues from contracts with customers | ||||||||||||||||||||||||||||||||
| Other revenues (c) | ( | |||||||||||||||||||||||||||||||
| Electric revenues | ||||||||||||||||||||||||||||||||
| Natural gas revenues | ||||||||||||||||||||||||||||||||
| Total operating revenues | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
(a)Sales for resale includes day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments and includes them as part of customer revenues.
(b)Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market, unbilled revenue, and certain customer credits as directed by regulators.
(c)Other Utility revenues include the occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, late fees, and amounts resulting from other operating activities.
(d)Other revenues include the sale of electric power and capacity to wholesale customers, day-ahead sales of energy in a market administered by an ISO, and operation and management services fees.
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Entergy Corporation and Subsidiaries
Notes to Financial Statements
NOTE 13. HELD FOR SALE AND DISPOSITIONS (Entergy Corporation, Entergy Louisiana, and Entergy New Orleans)
Natural Gas Distribution Businesses
As discussed in Note 14 to the financial statements in the Form 10-K, on October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of Orleans, Louisiana, and Entergy Louisiana agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of East Baton Rouge, Louisiana. The Entergy New Orleans and Entergy Louisiana natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy New Orleans and Entergy Louisiana through June 30, 2025.
Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).
The transactions had two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions were satisfied or, where permissible, waived for both transactions. As described above, the transactions received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.
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Entergy Corporation and Subsidiaries
Notes to Financial Statements
The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses first met the criteria to be classified as held for sale in the quarter ended December 31, 2024. Neither Entergy Louisiana nor Entergy New Orleans recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of December 31, 2024 included the following amounts:
| December 31, 2024 | ||||||||||||||||||||
| Entergy | Entergy Louisiana | Entergy New Orleans | ||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Deferred fuel | $ | $ | $ | |||||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||||||||
| Materials and supplies | ||||||||||||||||||||
| Prepayments and other | ||||||||||||||||||||
| Total current assets held for sale | $ | $ | $ | |||||||||||||||||
| Property, plant, and equipment - natural gas | $ | $ | $ | |||||||||||||||||
| Construction work in progress | ||||||||||||||||||||
| Less - accumulated depreciation and amortization | ( | ( | ( | |||||||||||||||||
| Other regulatory assets | ||||||||||||||||||||
| Goodwill (a) | ||||||||||||||||||||
| Pension and other postretirement assets | ||||||||||||||||||||
| Other | ||||||||||||||||||||
| Total non-current assets held for sale | $ | $ | $ | |||||||||||||||||
| Accounts payable | $ | $ | $ | |||||||||||||||||
| Customer deposits | ||||||||||||||||||||
| Taxes accrued | ||||||||||||||||||||
| Other | ||||||||||||||||||||
Total current liabilities held for sale (b) | $ | $ | $ | |||||||||||||||||
| Regulatory liability for income taxes - net | $ | $ | $ | |||||||||||||||||
| Other regulatory liabilities | ||||||||||||||||||||
| Pension and other postretirement liabilities | ||||||||||||||||||||
| Other | ||||||||||||||||||||
Total non-current liabilities held for sale (c) | $ | $ | $ | |||||||||||||||||
(a) Goodwill was allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.
(b) Included within other current liabilities on the respective consolidated balance sheets.
(c) Included within other non-current liabilities on the respective consolidated balance sheets.
Entergy Louisiana and Entergy New Orleans continued to recognize depreciation on the natural gas distribution businesses assets through June 30, 2025 since they received revenues through utility customer rates through the closing of the transaction, and because the final purchase price for the natural gas distribution businesses was adjusted by an amount equal to that depreciation, among other adjustments.
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Entergy Corporation and Subsidiaries
Notes to Financial Statements
The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three and nine months ended September 30, 2025 and 2024 is as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (In Thousands) | (In Thousands) | |||||||||||||||||||||||||
| Entergy | $ | $ | $ | $ | ||||||||||||||||||||||
| Entergy Louisiana | $ | $ | $ | $ | ||||||||||||||||||||||
| Entergy New Orleans | $ | $ | $ | $ | ||||||||||||||||||||||
On July 1, 2025, Entergy Louisiana and Entergy New Orleans completed the sale of their natural gas distribution businesses. The base purchase price paid by the buyer of the Entergy Louisiana natural gas distribution business upon closing was $203 million, and the base purchase price paid by the buyer of the Entergy New Orleans natural gas distribution business upon closing was $288 million. In third quarter 2025, Entergy Louisiana, Entergy New Orleans, and Entergy recognized gains of $17 million ($13 million net-of-tax), $7 million ($5 million net-of-tax), and $17 million ($11 million net-of-tax), respectively, in connection with the completion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses. The gains recognized by Entergy Louisiana, Entergy New Orleans, and Entergy were net of $15 million, $18 million, and $33 million, respectively, in transaction costs, and Entergy’s gain also included the derecognition of $7 million of goodwill attributed to the businesses sold following the completion of the sale. In third quarter 2025, Entergy New Orleans and Entergy deferred $4 million of their respective gains recognized as a result of the sale of the Entergy New Orleans natural gas distribution business as a regulatory liability. The regulatory liability will be amortized over three years beginning September 2026, as the $4 million is credited to customers, as required by the City Council. The gains resulting from the sale of the natural gas distribution businesses for Entergy, Entergy Louisiana, and Entergy New Orleans are included within other operation and maintenance expenses on the respective consolidated income statements. The purchase price for each natural gas distribution business is subject to an additional true-up related to the value of assets and liabilities transferred, which may result in subsequent adjustments to the gains recognized in third quarter 2025. Additionally in third quarter 2025, as a result of the sale, Entergy New Orleans recorded a write-off of $13 million of natural gas plant assets that were not included in the sale to Delta New Orleans Gas Company, LLC, and which will not be recovered. Entergy Louisiana did not recognize any write downs of natural gas distribution business assets as a result of the sale. See Note 10 to the financial statements herein for discussion of the tax accounting effects of the sale.
________________
In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. Entergy’s business is subject to seasonal fluctuations, however, with peak periods occurring typically during the first and third quarters. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year.
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Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk
See the “Market and Credit Risk Sensitive Instruments” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis.
Part I, 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.
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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.
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
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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’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
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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.
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 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.
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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.
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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 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.
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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;
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•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.
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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
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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.
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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
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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.
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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
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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.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Nuclear refueling outage expenses | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Asset write-offs | ||||||||||||||||||||||||||
| Decommissioning | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | ||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interest | ( | ( | ( | ( | ||||||||||||||||||||||
| EARNINGS APPLICABLE TO MEMBER'S EQUITY | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Asset write-offs | ||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | ( | |||||||||||||
| Fuel inventory | ( | |||||||||||||
| Accounts payable | ( | |||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ( | ( | ||||||||||||
| Other working capital accounts | ( | ( | ||||||||||||
| Provisions for estimated losses | ||||||||||||||
| Other regulatory assets | ( | |||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Pension and other postretirement funded status | ( | ( | ||||||||||||
| Other assets and liabilities | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Payment for purchase of plant and assets | ( | ( | ||||||||||||
| Nuclear fuel purchases | ( | ( | ||||||||||||
| Proceeds from sale of nuclear fuel | ||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | ||||||||||||||
| Investment in nuclear decommissioning trust funds | ( | ( | ||||||||||||
| Changes in money pool receivable - net | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Capital contributions from parent | ||||||||||||||
| Changes in money pool payable - net | ( | ( | ||||||||||||
| Other | ||||||||||||||
| Net cash flow provided by financing activities | ||||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
Income taxes - net (includes production tax credit sale proceeds of $ | ($ | $ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| ASSETS | ||||||||||||||
| September 30, 2025 and December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| (In Thousands) | ||||||||||||||
| CURRENT ASSETS | ||||||||||||||
| Cash and cash equivalents: | ||||||||||||||
| Cash | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Deferred nuclear refueling outage costs | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Decommissioning trust funds | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Construction work in progress | ||||||||||||||
| Nuclear fuel | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Decommissioning | ||||||||||||||
| Accumulated provisions | ||||||||||||||
| Long-term debt | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | ||||||||||||||
| Noncontrolling interest | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | $ | ||||||||||||||
| Net loss | ( | ( | ( | ||||||||||||||
| Capital contribution from parent | — | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at March 31, 2024 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Capital contribution from parent | — | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at June 30, 2024 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | ||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at March 31, 2025 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at June 30, 2025 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Distributions to noncontrolling interest | ( | — | ( | ||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||
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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
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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’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.
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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.
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.
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;
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•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
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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.
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.
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
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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
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 production tax credits recorded in 2025.
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.
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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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•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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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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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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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.
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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.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| Natural gas | ||||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Nuclear refueling outage expenses | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Decommissioning | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | ( | ( | |||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Interest and investment income - affiliated | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | ||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ||||||||||||||||||||||||||
| EARNINGS APPLICABLE TO MEMBER'S EQUITY | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive loss | |||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
| Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive Income | |||||||||||||||||||||||
| Net income attributable to noncontrolling interests | |||||||||||||||||||||||
| Comprehensive Income Applicable to Member’s Equity | $ | $ | $ | $ | |||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Changes in working capital: | ||||||||||||||
| Receivables | ( | ( | ||||||||||||
| Fuel inventory | ||||||||||||||
| Accounts payable | ( | |||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ( | ( | ||||||||||||
| Deferred fuel costs | ||||||||||||||
| Other working capital accounts | ( | ( | ||||||||||||
| Changes in provisions for estimated losses | ( | |||||||||||||
| Changes in other regulatory assets | ( | |||||||||||||
| Changes in other regulatory liabilities | ( | |||||||||||||
| Changes in pension and other postretirement funded status | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Payment for purchase of assets | ( | |||||||||||||
| Proceeds from sale of business and assets | ||||||||||||||
| Nuclear fuel purchases | ( | ( | ||||||||||||
| Proceeds from sale of nuclear fuel | ||||||||||||||
| Payments to storm reserve escrow account | ( | ( | ||||||||||||
| Receipt from storm reserve escrow account | ||||||||||||||
| Redemption of preferred membership interests of affiliate | ||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | ||||||||||||||
| Investment in nuclear decommissioning trust funds | ( | ( | ||||||||||||
| Changes in money pool receivable - net | ( | ( | ||||||||||||
| Insurance proceeds received for property damages | ||||||||||||||
| Decrease (increase) in other investments | ( | |||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Change in money pool payable - net | ( | |||||||||||||
| Customer advances received for construction | ||||||||||||||
| Customer advances used for construction | ( | ( | ||||||||||||
| Common equity distributions paid | ( | ( | ||||||||||||
| Other | ( | ( | ||||||||||||
| Net cash flow provided by (used in) financing activities | ( | |||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
Income taxes - net (includes production tax credit sale proceeds of $ | ($ | $ | ||||||||||||
Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Deferred nuclear refueling outage costs | ||||||||||||||
| Current assets held for sale | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Investment in affiliate preferred membership interests | ||||||||||||||
| Decommissioning trust funds | ||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | ||||||||||||||
| Storm reserve escrow account | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Natural gas | ||||||||||||||
| Construction work in progress | ||||||||||||||
| Nuclear fuel | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Non-current assets held for sale | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Customer advances | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Decommissioning | ||||||||||||||
| Accumulated provisions | ||||||||||||||
| Pension and other postretirement liabilities | ||||||||||||||
| Long-term debt | ||||||||||||||
| Customer advances for construction | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
Member’s equity | ||||||||||||||
| Accumulated other comprehensive income | ||||||||||||||
| Noncontrolling interests | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | $ | $ | |||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Non-cash contribution from parent | — | — | |||||||||||||||||||||
| Common equity distributions | — | ( | — | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at March 31, 2024 | |||||||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Common equity distributions | — | ( | — | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at June 30, 2024 | |||||||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | $ | |||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Common equity distributions | — | ( | — | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at March 31, 2025 | |||||||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Common equity distributions | — | ( | — | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at June 30, 2025 | |||||||||||||||||||||||
| Net income | — | ||||||||||||||||||||||
| Other comprehensive loss | — | — | ( | ( | |||||||||||||||||||
| Common equity distributions | — | ( | — | ( | |||||||||||||||||||
| Distributions to LURC | ( | — | — | ( | |||||||||||||||||||
| Other | — | ( | — | ( | |||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | |||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||
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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.
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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 | ||||
Entergy Mississippi’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.
The retail electric price variance is primarily due to increases in formula rate plan rates effective April 2024 and July 2024 and an increase in 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.
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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, and an increase in demand from small industrial customers.
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.
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.
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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.
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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;
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•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.
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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,
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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.
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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.
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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
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.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ||||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | |||||||||||||||||||||||
| TOTAL | ( | ( | ||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | ||||||||||||||||||||||||||
| Net income (loss) attributable to noncontrolling interest | ( | ( | ( | |||||||||||||||||||||||
| EARNINGS APPLICABLE TO MEMBER'S EQUITY | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | ( | ( | ||||||||||||
| Fuel inventory | ( | |||||||||||||
| Accounts payable | ( | ( | ||||||||||||
| Taxes accrued | ( | |||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ( | |||||||||||||
| Other working capital accounts | ( | |||||||||||||
| Provisions for estimated losses | ( | ( | ||||||||||||
| Other regulatory assets | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
Pension and other postretirement funded status | ( | ( | ||||||||||||
| Other assets and liabilities | ||||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Proceeds from sale of assets | ||||||||||||||
| Changes in money pool receivable - net | ( | ( | ||||||||||||
| Receipt from storm reserve escrow account | ||||||||||||||
| Increase in other investments | ( | ( | ||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | |||||||||||||
| Capital contribution from parent | ||||||||||||||
| Change in money pool payable - net | ( | |||||||||||||
| Customer advances received for construction | ||||||||||||||
| Customer advances used for construction | ( | ( | ||||||||||||
| Common equity distributions paid | ( | |||||||||||||
| Other | ( | ( | ||||||||||||
| Net cash flow provided by financing activities | ||||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
| Income taxes - net | $ | $ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Non-utility property - at cost (less accumulated depreciation) | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Construction work in progress | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Other | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Customer advances | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Asset retirement cost liabilities | ||||||||||||||
| Accumulated provisions | ||||||||||||||
| Long-term debt | ||||||||||||||
| Customer advances for construction | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | ||||||||||||||
| Noncontrolling interest | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | $ | ||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Balance at March 31, 2024 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Common equity distributions | — | ( | ( | ||||||||||||||
| Balance at June 30, 2024 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Common equity distributions | — | ( | ( | ||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | ||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Capital contribution from parent | — | ||||||||||||||||
| Balance at March 31, 2025 | |||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||
| Balance at June 30, 2025 | |||||||||||||||||
| Net income | |||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||
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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.
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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’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
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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
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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.
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 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.
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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 | |||||||||
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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.
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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.
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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
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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
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.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| Natural gas | ||||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Asset write-offs | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | ( | ||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | |||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ( | |||||||||||||
| Asset write-offs | ||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | ( | ( | ||||||||||||
| Fuel inventory | ||||||||||||||
| Accounts payable | ( | ( | ||||||||||||
| Prepaid taxes and taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ( | |||||||||||||
| Other working capital accounts | ( | ( | ||||||||||||
| Provisions for estimated losses | ( | |||||||||||||
| Other regulatory assets | ||||||||||||||
| Other regulatory liabilities | ( | |||||||||||||
| Pension and other postretirement funded status | ( | |||||||||||||
| Other assets and liabilities | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Changes in money pool receivable - net | ( | ( | ||||||||||||
| Receipt from storm reserve escrow account | ||||||||||||||
| Payments to storm reserve escrow account | ( | ( | ||||||||||||
| Proceeds from sale of business | ||||||||||||||
| Changes in securitization account | ||||||||||||||
| Net cash flow provided by (used in) investing activities | ( | |||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Changes in money pool payable - net | ( | |||||||||||||
| Common equity distributions paid | ( | |||||||||||||
| Other | ( | |||||||||||||
| Net cash flow provided by (used in) financing activities | ( | |||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
| Income taxes - net | $ | $ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Securitization recovery trust account | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Current assets held for sale | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Storm reserve escrow account | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Natural gas | ||||||||||||||
| Construction work in progress | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Non-current assets held for sale | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Payable due to associated company | ||||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Accumulated provisions | ||||||||||||||
| Long-term debt | ||||||||||||||
| Long-term payable due to associated company | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
| Member's equity | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | |||||||
| Net loss | ( | |||||||
| Balance at March 31, 2024 | ||||||||
| Net income | ||||||||
| Balance at June 30, 2024 | ||||||||
| Net income | ||||||||
| Balance at September 30, 2024 | $ | |||||||
| Balance at December 31, 2024 | $ | |||||||
| Net income | ||||||||
| Balance at March 31, 2025 | ||||||||
| Net income | ||||||||
| Balance at June 30, 2025 | ||||||||
| Net income | ||||||||
| Common equity distributions | ( | |||||||
| Balance at September 30, 2025 | $ | |||||||
| See Notes to Financial Statements. | ||||||||
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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
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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’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 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 transportation, wood products, petroleum refining, industrial gases, and primary metals industries, and an increase in demand from small industrial customers.
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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.
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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.
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 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.
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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.
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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.
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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.
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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
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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.
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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
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.
Retail Rates
Distribution Cost Recovery Factor (DCRF) Rider
In April 2025, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The 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.
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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.
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Industrial and Commercial Customers
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers” in the Form 10-K for a discussion of industrial and commercial customers.
Environmental Risks
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.
Critical Accounting Estimates
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Texas’s accounting for utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Purchased power | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | |||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | ||||||||||||||||||||||||||
| Preferred dividend requirements | ||||||||||||||||||||||||||
| EARNINGS APPLICABLE TO COMMON STOCK | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | ( | ( | ||||||||||||
| Fuel inventory | ||||||||||||||
| Accounts payable | ||||||||||||||
| Taxes accrued | ( | ( | ||||||||||||
| Interest accrued | ( | ( | ||||||||||||
| Deferred fuel costs | ( | |||||||||||||
| Other working capital accounts | ( | ( | ||||||||||||
| Provisions for estimated losses | ( | |||||||||||||
| Other regulatory assets | ||||||||||||||
| Other regulatory liabilities | ( | ( | ||||||||||||
| Pension and other postretirement funded status | ( | ( | ||||||||||||
| Other assets and liabilities | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Proceeds from sale of assets | ||||||||||||||
| Changes in money pool receivable - net | ||||||||||||||
| Changes in securitization account | ( | ( | ||||||||||||
| Decrease in other investments | ||||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Change in money pool payable - net | ||||||||||||||
| Preferred stock dividends paid | ( | ( | ||||||||||||
| Other | ( | |||||||||||||
| Net cash flow provided by financing activities | ||||||||||||||
| Net increase (decrease) in cash and cash equivalents | ( | |||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
| Income taxes - net | $ | $ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Securitization recovery trust account | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Customer | ||||||||||||||
| Allowance for doubtful accounts | ( | ( | ||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Accrued unbilled revenues | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Fuel inventory - at average cost | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Investments in affiliates - at equity | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Construction work in progress | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
Other regulatory assets (includes securitization property of $ | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Customer deposits | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Deferred fuel costs | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Asset retirement cost liabilities | ||||||||||||||
| Accumulated provisions | ||||||||||||||
Long-term debt (includes securitization bonds of $ | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| EQUITY | ||||||||||||||
Common stock, | ||||||||||||||
| Paid-in capital | ||||||||||||||
| Retained earnings | ||||||||||||||
| Total common shareholder's equity | ||||||||||||||
| Preferred stock without sinking fund | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at March 31, 2024 | |||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at June 30, 2024 | |||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at March 31, 2025 | |||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at June 30, 2025 | |||||||||||||||||||||||||||||
| Net income | — | — | — | ||||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | ( | ( | ||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||||||||||||||
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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%
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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
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 production tax credits recorded in 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 | $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
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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.
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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.
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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.
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Critical Accounting Estimates
See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in System Energy’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.
New Accounting Pronouncements
See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.
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| 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 | $ | $ | $ | $ | ||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Operation and Maintenance: | ||||||||||||||||||||||||||
| Fuel, fuel-related expenses, and gas purchased for resale | ||||||||||||||||||||||||||
| Nuclear refueling outage expenses | ||||||||||||||||||||||||||
| Other operation and maintenance | ||||||||||||||||||||||||||
| Decommissioning | ||||||||||||||||||||||||||
| Taxes other than income taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Other regulatory charges (credits) - net | ( | |||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| OPERATING INCOME | ||||||||||||||||||||||||||
| OTHER INCOME | ||||||||||||||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||||||||||||||
| Interest and investment income | ||||||||||||||||||||||||||
| Miscellaneous - net | ( | ( | ||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ( | ( | ||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | ||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||||||||||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||||||||
| Depreciation, amortization, and decommissioning, including nuclear fuel amortization | ||||||||||||||
| Deferred income taxes, tax credits, and non-current taxes accrued | ||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Receivables | ( | |||||||||||||
| Accounts payable | ( | |||||||||||||
| Taxes accrued | ( | ( | ||||||||||||
| Interest accrued | ||||||||||||||
| Other working capital accounts | ( | ( | ||||||||||||
| Other regulatory assets | ( | |||||||||||||
| Other regulatory liabilities | ( | |||||||||||||
Pension and other postretirement funded status | ( | ( | ||||||||||||
| Other assets and liabilities | ( | ( | ||||||||||||
| Net cash flow provided by operating activities | ||||||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Construction expenditures | ( | ( | ||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Nuclear fuel purchases | ( | ( | ||||||||||||
| Proceeds from sale of nuclear fuel | ||||||||||||||
| Decrease in other investments | ||||||||||||||
| Proceeds from nuclear decommissioning trust fund sales | ||||||||||||||
| Investment in nuclear decommissioning trust funds | ( | ( | ||||||||||||
| Changes in money pool receivable - net | ( | ( | ||||||||||||
| Net cash flow used in investing activities | ( | ( | ||||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from the issuance of long-term debt | ||||||||||||||
| Retirement of long-term debt | ( | ( | ||||||||||||
| Capital contribution from parent | ||||||||||||||
| Change in money pool payable - net | ( | |||||||||||||
| Common stock dividends and distributions paid | ( | |||||||||||||
| Net cash flow provided by (used in) financing activities | ( | |||||||||||||
| Net increase in cash and cash equivalents | ||||||||||||||
| Cash and cash equivalents at beginning of period | ||||||||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest - net of amount capitalized | $ | $ | ||||||||||||
Income taxes - net (includes production tax credit sale proceeds of $ | ($ | ($ | ||||||||||||
| Noncash investing activities: | ||||||||||||||
| Accrued construction expenditures | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Temporary cash investments | ||||||||||||||
| Total cash and cash equivalents | ||||||||||||||
| Accounts receivable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Total accounts receivable | ||||||||||||||
| Materials and supplies | ||||||||||||||
| Deferred nuclear refueling outage costs | ||||||||||||||
| Prepayments and other | ||||||||||||||
| TOTAL | ||||||||||||||
| OTHER PROPERTY AND INVESTMENTS | ||||||||||||||
| Decommissioning trust funds | ||||||||||||||
| TOTAL | ||||||||||||||
| UTILITY PLANT | ||||||||||||||
| Electric | ||||||||||||||
| Construction work in progress | ||||||||||||||
| Nuclear fuel | ||||||||||||||
| TOTAL UTILITY PLANT | ||||||||||||||
| Less - accumulated depreciation and amortization | ||||||||||||||
| UTILITY PLANT - NET | ||||||||||||||
| DEFERRED DEBITS AND OTHER ASSETS | ||||||||||||||
| Regulatory assets: | ||||||||||||||
| Other regulatory assets | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL ASSETS | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | $ | ||||||||||||
| Accounts payable: | ||||||||||||||
| Associated companies | ||||||||||||||
| Other | ||||||||||||||
| Taxes accrued | ||||||||||||||
| Interest accrued | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||||
| Accumulated deferred income taxes and taxes accrued | ||||||||||||||
| Accumulated deferred investment tax credits | ||||||||||||||
| Regulatory liability for income taxes - net | ||||||||||||||
| Other regulatory liabilities | ||||||||||||||
| Decommissioning | ||||||||||||||
| Long-term debt | ||||||||||||||
| Other | ||||||||||||||
| TOTAL | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||
| COMMON EQUITY | ||||||||||||||
Common stock, | ||||||||||||||
| Retained earnings | ||||||||||||||
| TOTAL | ||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||||||||
| See Notes to Financial Statements. | ||||||||||||||
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| 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 | $ | ($ | $ | ||||||||||||||
| Net income | — | ||||||||||||||||
| Capital contribution from parent | — | ||||||||||||||||
| Balance at March 31, 2024 | |||||||||||||||||
| Net income | — | ||||||||||||||||
| Balance at June 30, 2024 | |||||||||||||||||
| Net income | — | ||||||||||||||||
| Balance at September 30, 2024 | $ | $ | $ | ||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | ||||||||||||||
| Net income | — | ||||||||||||||||
| Common stock dividends and distributions | ( | ( | ( | ||||||||||||||
| Balance at March 31, 2025 | |||||||||||||||||
| Net income | — | ||||||||||||||||
| Common stock dividends and distributions | ( | ( | ( | ||||||||||||||
| Balance at June 30, 2025 | |||||||||||||||||
| Net income | — | ||||||||||||||||
| Common stock dividends and distributions | — | ( | ( | ||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | ||||||||||||||
| See Notes to Financial Statements. | |||||||||||||||||
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ENTERGY CORPORATION AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See “PART I, Item 1, Litigation” in the Form 10-K for a discussion of legal, administrative, and other regulatory proceedings affecting Entergy. Also see Notes 1 and 2 to the financial statements herein and “Item 5, Other Information, Environmental Regulation” below for updates regarding environmental proceedings and regulation. The following is an update to that discussion.
Dorrell, et al. v. Constellation Energy, et al. Antitrust Class Action Litigation
On July 11, 2025, an antitrust class action lawsuit was filed in the United States District Court for the District of Maryland on behalf of a putative class against Entergy Corporation, 26 other entities alleged to own and/or operate commercial nuclear power plants in the United States (together with Entergy Corporation, the “nuclear defendants”), and two consulting companies. The class action complaint purports to be brought on behalf of all persons employed in nuclear power generation by the nuclear defendants and their subsidiaries and related entities in the United States from May 1, 2003 to the present. The plaintiffs primarily allege that the nuclear defendants, together with the consulting company defendants, violated Section 1 of the Sherman Act, 15 U.S. Code Chapter 1 by conspiring to suppress compensation and exchange collective bargaining agreement and wage information through a trade group, a consulting firm, and through direct communications, including attendance at conferences, from May 2003 to the present. The plaintiffs are seeking unspecified monetary damages, including treble damages, interest, injunctive relief, attorney’s fees, and costs. Entergy Corporation is evaluating the complaint.
Item 1A. Risk Factors
There have been no material changes to the risk factors discussed in "Part I, Item 1A. RISK FACTORS" in the Form 10-K.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities (1)
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan | Maximum $ Amount of Shares that May Yet be Purchased Under a Plan (2) | ||||||||||||||||||||||
| 7/01/2025-7/31/2025 | — | $— | — | $350,052,918 | ||||||||||||||||||||||
| 8/01/2025-8/31/2025 | — | $— | — | $350,052,918 | ||||||||||||||||||||||
| 9/01/2025-9/30/2025 | — | $— | — | $350,052,918 | ||||||||||||||||||||||
| Total | — | $— | — | |||||||||||||||||||||||
In accordance with Entergy’s stock-based compensation plans, Entergy periodically grants stock options to key employees, which may be exercised to obtain shares of Entergy’s common stock. According to the plans, these shares can be newly issued shares, treasury stock, or shares purchased on the open market. Entergy’s management has been authorized by the Board to repurchase on the open market shares up to an amount sufficient to fund the exercise of grants under the plans. In addition to this authority, the Board has authorized share repurchase programs to enable opportunistic purchases in response to market conditions. In October 2010 the Board granted authority for a $500 million share repurchase program. The amount of share repurchases under these programs may vary as a result of material changes in business results or capital spending or new investment opportunities. In addition, in the first quarter 2025, Entergy withheld 61,042 shares of its common stock at $78.79 per share, 1,300 shares of its
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common stock at $81.31 per share, 213,368 shares of its common stock at $81.99 per share, 171,525 shares of its common stock at $82.52 per share, and 1,118 shares of its common stock at $82.82 per share to pay income taxes due upon vesting of restricted stock granted and payout of performance units as part of its long-term incentive program.
(1)See Note 12 to the financial statements in the Form 10-K for additional discussion of the stock-based compensation plans.
(2)Maximum amount of shares that may yet be repurchased relates only to the $500 million share repurchase program plan and does not include an estimate of the amount of shares that may be purchased to fund the exercise of grants under the stock-based compensation plans.
Item 5. Other Information
U.S. Securities and Exchange Commission Investigation
The Staff of the Division of Enforcement of the U.S. Securities and Exchange Commission conducted an investigation regarding Entergy’s processes and controls relating to its accounting for materials and supplies inventory. In December 2024, Entergy reached a settlement with the SEC to resolve the previously disclosed SEC investigation into Entergy’s internal controls and books and records concerning potential surplus materials and supplies inventory. Under the settlement terms, in which Entergy neither admitted nor denied the SEC’s allegations, Entergy consented to the entry of an injunction, paid a $12 million civil penalty, which was accrued in 2024 and paid in January 2025, and agreed to engage a consultant to conduct an assessment and make recommendations concerning Entergy’s internal controls related to the accounting for surplus materials and supplies. In September 2025 the independent consultant completed its assessment and submitted a report to Entergy and the SEC. Entergy is in the process of implementing the independent consultant’s recommendations.
Rule 10b5-1 Trading Arrangements
Regulation of the Nuclear Power Industry
The following are updates to the “Regulation of the Nuclear Power Industry” section of Part I, Item 1 of the Form 10-K.
Nuclear Waste Policy Act of 1982
Nuclear Plant Decommissioning
In March 2025 filings with the NRC were made that reported the decommissioning funding for all of Entergy’s subsidiaries’ nuclear plants. Those reports showed that decommissioning funding for each of the nuclear plants met the NRC’s financial assurance requirements.
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
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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. All of the nuclear generating plants owned and operated by Entergy’s Utility business are currently in Column 1, except Waterford 3, which is 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 Regulation
The following are updates to the “Environmental Regulation” section of Part I, Item 1 of the Form 10-K.
In March 2025 the EPA announced a series of deregulatory actions, including reconsideration of the particulate matter National Ambient Air Quality Standards (NAAQS), reconsideration of the Mercury and Air Toxics Standard (MATS) rule, reconsideration of greenhouse gas emissions rules, evaluation of whether to extend the compliance deadlines under the 2024 coal combustion residuals rule, and reconsideration of the effluent limitations guidelines. Entergy continues to monitor the EPA’s reconsideration efforts.
National Ambient Air Quality Standards
See the Form 10-K for discussion of the NAAQS set by the EPA in accordance with the Clean Air Act. The following are updates to that discussion.
Hazardous Air Pollutants
As discussed in the Form 10-K, the EPA released the final MATS rule in December 2011, which had a compliance date, with a widely granted one-year extension, of April 2016. The required controls have been installed and are operational at all affected Entergy units. In May 2024 the EPA issued a final rule revising portions of the MATS rule, including a reduction to the emission limit for filterable particulate matter. The revised standard will become effective July 2027 and could require additional capital investment and/or additional other operation and maintenance costs at Entergy’s coal-fired generating units. In March 2025, as part of its deregulatory agenda, the EPA announced that it was reconsidering the May 2024 MATS rule and that sources interested in a presidential exemption (two years, with additional exemptions available) should provide a recommendation to the EPA by March 31, 2025. Clean Air Act Section 112(i)(4) grants the President authority to issue an exemption if he determines that “the technology to implement such standard is not available and that it is in the national security interests of the United States to do so.” Entergy requested and received presidential exemptions for emissions of filterable particulate matter from Nelson Unit 6 and White Bluff Unit 1. The exemption lasts for a period of two years beyond the rule’s compliance date, i.e., from July 8, 2027 through July 8, 2029. Additionally, in June 2025, the EPA proposed to repeal certain aspects of the May 2024 MATS rule including the revised emission limit for filterable particulate matter for which the presidential exemption was granted. Comments on the proposed rule were due August 2025, and the EPA is expected to finalize the rule by the end of 2025.
Good Neighbor Plan/Cross-State Air Pollution Rule
As discussed in the Form 10-K, in June 2023 the EPA published its final Federal Implementation Plan (FIP), known as the Good Neighbor Plan, to address interstate transport for the 2015 ozone NAAQS which would increase the stringency of the Cross-State Air Pollution Rule (CSAPR) program in all four of the states where the Utility operating companies operate. The FIP would significantly reduce ozone season nitrogen oxides (NOx) emission allowance budgets and allocations for electric generating units. Prior to issuance of the FIP, in February
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2023 the EPA issued related State Implementation Plan (SIP) disapprovals for many states, including the four states in which the Utility operating companies operate, and these SIP disapprovals are the subject of many legal challenges, including a petition for review filed by Entergy Louisiana challenging the disapproval of Louisiana’s SIP. Judicial stays of the SIP disapprovals were granted in all four states in which the Utility operating companies operate. In March 2025 the United States Fifth Circuit Court of Appeals concluded that the EPA properly disapproved Texas’s and Louisiana’s SIPs but found that the EPA’s disapproval was unreasonable for Mississippi’s SIP. The United States Eighth Circuit Court of Appeals has not issued a merits decision yet in the Arkansas SIP disapproval litigation. The FIP is also subject to numerous legal challenges in various federal circuit courts of appeals, and in June 2024 the United States Supreme Court issued an order, in challenges filed in the D.C. Circuit, staying enforcement of the FIP pending the D.C. Circuit’s review of the rule. Following the United States Supreme Court stay, the EPA also stayed the FIP. In March 2025 the EPA asked the D.C. Circuit for a voluntary remand to reconsider the FIP. In its declaration, the EPA states that it plans to reconsider, among other things, what states are subject to the FIP. In April 2025 the D.C. Circuit held the cases in abeyance pending further order of the court. The EPA anticipates a new rule by fall 2026. Entergy is monitoring this litigation, any subsequent rulemaking, and assessing its compliance options in the event that the FIP becomes effective.
Greenhouse Gas Emissions
As discussed in the Form 10-K, in May 2024 the EPA finalized rules regulating greenhouse gas emissions from new combustion turbine electric generating units (EGUs) under Section 111(b) of the Clean Air Act and from certain existing coal- and gas-fired EGUs under Section 111(d) of the Clean Air Act. For new gas combustion turbine EGUs, the final rule includes three subcategories of emission standards based on the unit’s annual capacity factor. Base load (>40% annual capacity factor) EGUs are subject to a Phase 1 output-based CO2 efficiency standard followed by a more stringent Phase 2 CO2 standard which will apply beginning January 1, 2032. The Phase 2 standard was established based on an EPA determination that carbon capture and sequestration represents the best system of emission reduction for new base load combustion turbine EGUs.
In June 2025 the EPA released a rule proposing to repeal the May 2024 rule in its entirety, or alternatively, to repeal (1) the Phase 2 standard requiring carbon capture and sequestration for new combustion turbines because it is not an adequately demonstrated technology and (2) the standards for existing coal and gas units. Thus, under the proposed alternative proposal, the only standards that would remain are the Phase 1 standards for new gas combustion turbines. Comments on this proposed repeal were due August 2025, and the EPA is expected to finalize the rule by the end of 2025. Entergy continues to monitor the status of the EPA’s efforts to repeal the May 2024 rule.
Entergy continues to support national legislation that would most efficiently reduce economy-wide greenhouse gas emissions and increase planning certainty for electric utilities. By virtue of its proportionally large investment in low-emitting generation technologies, Entergy has a low overall carbon dioxide emission “intensity,” or rate of carbon dioxide emitted per megawatt-hour of electricity generated. In anticipation of the imposition of carbon dioxide emission limits on the electric industry, Entergy initiated actions designed to reduce its exposure to potential new governmental requirements related to carbon dioxide emissions. In 2019 Entergy announced a 2030 carbon dioxide emission rate goal focused on a 50% reduction from Entergy’s base year - 2000. In September 2020, Entergy announced a commitment to achieve net-zero greenhouse gas emissions by 2050 inclusive of all businesses, all applicable gases, and all emission scopes. In 2022, Entergy enhanced its commitment to include an interim goal of 50% carbon-free energy generating capacity by 2030 and expanded its interim emission rate goal to include all purchased power. Due to stronger than initially expected sales growth, necessitating the development of new generation capacity that is not carbon-free, and changes to the tax credits applicable to carbon-free generation, Entergy believes that (1) achievement of the carbon intensity goal may be delayed beyond 2030 and (2) achievement of the carbon-free energy generating capacity goal will not be achieved by 2030. As Entergy has communicated in various forums, its clean energy and carbon-reducing generation initiatives will be customer-led. Also, Entergy recognizes and has communicated that carbon capture and storage is a technology that Entergy is well positioned to deploy in the future. Entergy plans to pursue carbon capture and storage on new combined cycle generation when feasible and supported by customer demand. Carbon capture and storage, while offering the
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potential to meet customers’ long-term clean energy demands, is not carbon-free nor will it be deployed in the immediate term. See "Part I, Item 1A. RISK FACTORS" in the Form 10-K for discussion of the risks associated with achieving these climate goals. Entergy’s comprehensive, third party verified greenhouse gas inventory and progress against its voluntary goals are published on its website.
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Item 6. Exhibits
| 4(a) - | Officer’s Certificate for System Energy, dated as of October 1, 2025, supplemental to Mortgage and Deed of Trust of System Energy, dated as of June 15, 1977, establishing additional events of default and provisions relating to Assignments of Availability Agreement for each of System Energy’s First Mortgage Bonds, MBFC Series due 2044, First Mortgage Bonds, 6.00% Series due April 15, 2028, and First Mortgage Bonds, 5.30% Series due December 15, 2034 (4.01 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| 10(a) - | Availability Agreement, dated October 1, 2025, among System Energy and Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans (1.01 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| 10(b) - | First Assignment of Availability Agreement, Consent and Agreement, dated as of October 1, 2025, among System Energy, Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans and The Bank of New York Mellon, as Mortgage Trustee (1.02 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| 10(c) - | Second Assignment of Availability Agreement, Consent and Agreement, dated as of October 1, 2025, among System Energy, Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans and The Bank of New York Mellon, as Mortgage Trustee (1.03 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| 10(d) - | Third Assignment of Availability Agreement, Consent and Agreement, dated as of October 1, 2025, among System Energy, Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans and The Bank of New York Mellon, as Mortgage Trustee (1.04 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| 10(e) - | Unit Power Sales Agreement, as amended effective as of October 1, 2025, among System Energy and Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans (1.05 to Form 8-K filed October 3, 2025 in 1-09067). | |||||||
| *31(a) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation. | |||||||
| *31(b) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation. | |||||||
| *31(c) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas. | |||||||
| *31(d) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas. | |||||||
| *31(e) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana. | |||||||
| *31(f) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana. | |||||||
| *31(g) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi. | |||||||
| *31(h) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi. | |||||||
| *31(i) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans. | |||||||
| *31(j) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans. | |||||||
| *31(k) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas. | |||||||
| *31(l) - | Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas. | |||||||
| *31(m) - | Rule 13a-14(a)/15d-14(a) Certification for System Energy. | |||||||
| **32(a) - | Section 1350 Certification for Entergy Corporation. | |||||||
| **32(b) - | Section 1350 Certification for Entergy Corporation. | |||||||
| **32(c) - | Section 1350 Certification for Entergy Arkansas. | |||||||
| **32(d) - | Section 1350 Certification for Entergy Arkansas. | |||||||
| **32(e) - | Section 1350 Certification for Entergy Louisiana. | |||||||
| **32(f) - | Section 1350 Certification for Entergy Louisiana. | |||||||
| **32(g) - | Section 1350 Certification for Entergy Mississippi. | |||||||
| **32(h) - | Section 1350 Certification for Entergy Mississippi. | |||||||
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| **32(i) - | Section 1350 Certification for Entergy New Orleans. | |||||||
| **32(j) - | Section 1350 Certification for Entergy New Orleans. | |||||||
| **32(k) - | Section 1350 Certification for Entergy Texas. | |||||||
| **32(l) - | Section 1350 Certification for Entergy Texas. | |||||||
| **32(m) - | Section 1350 Certification for System Energy. | |||||||
| *101 INS - | Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| *101 SCH - | Inline XBRL Schema Document. | |||||||
| *101 PRE - | Inline XBRL Presentation Linkbase Document. | |||||||
| *101 LAB - | Inline XBRL Label Linkbase Document. | |||||||
| *101 CAL - | Inline XBRL Calculation Linkbase Document. | |||||||
| *101 DEF - | Inline XBRL Definition Linkbase Document. | |||||||
| *104 - | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibits 101). | |||||||
___________________________
Pursuant to Item 601(b)(4)(iii) of Regulation S-K, Entergy Corporation agrees to furnish to the Commission upon request any instrument with respect to long-term debt that is not registered or listed herein as an Exhibit because the total amount of securities authorized under such agreement does not exceed ten percent of the total assets of Entergy Corporation and its subsidiaries on a consolidated basis.
| * | Filed herewith. | ||||
| ** | Furnished, not filed, herewith. | ||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.
| ENTERGY CORPORATION ENTERGY ARKANSAS, LLC ENTERGY LOUISIANA, LLC ENTERGY MISSISSIPPI, LLC ENTERGY NEW ORLEANS, LLC ENTERGY TEXAS, INC. SYSTEM ENERGY RESOURCES, INC. | ||
| /s/ Reginald T. Jackson | ||
| Reginald T. Jackson Senior Vice President and Chief Accounting Officer (For each Registrant and for each as Principal Accounting Officer) | ||
Date: October 31, 2025
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ISE ETF 50 Index (Price Return)