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What changed in Entergy's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Entergy's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+1312 added−1547 removedSource: 10-K (2025-02-18) vs 10-K (2024-02-23)

Top changes in Entergy's 2024 10-K

1312 paragraphs added · 1547 removed · 924 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

318 edited+155 added−90 removed401 unchanged
Biggest changeDisruptions in the capital and credit markets or a downgrade in Entergy’s or its Registrant Subsidiaries’ credit ratings could, among other things, adversely affect their ability to meet liquidity needs, or to access capital to operate and grow their businesses, and the cost of capital. 239 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy • The reputation of Entergy or its Registrant Subsidiaries may be materially adversely affected by negative publicity or the inability to meet their stated goals or commitments, among other potential causes. • Changes in tax legislation and taxation as well as the inherent difficulty in quantifying potential tax effects of business decisions could negatively impact Entergy’s and the Registrant Subsidiaries’ results of operations, financial condition, and liquidity. • Entergy and its subsidiaries’ ability to successfully execute on their business strategies, including their ability to complete capital projects, other capital improvements, and strategic transactions, is subject to significant risks, and, as a result, they may be unable to achieve some or all of the anticipated results of such strategies. • Failure to attract, retain, and manage an appropriately qualified workforce could negatively affect Entergy or its subsidiaries’ results of operations. • Entergy and its subsidiaries, including the Utility operating companies and System Energy, may incur substantial costs (i) to fulfill their obligations related to environmental and other matters or (ii) related to reliability standards. • Entergy could be negatively affected by the effects of climate change, including physical risks, such as increased frequency and intensity of hurricanes, availability of water, droughts, and other severe weather and wildfires, and transition risks, such as environmental and regulatory obligations intended to combat the effects of climate change, including by compelling greenhouse gas emission reductions or reporting, or increasing clean or renewable energy requirements, or placing a price on greenhouse gas emissions. • Market performance and other changes may decrease the value of benefit plan assets, which then could require additional funding of such benefit plans and result in increased benefit plan costs. • The litigation environment in the states in which the Registrant Subsidiaries operate poses a significant risk to those businesses. • Terrorist attacks and sabotage, physical attacks, cyber attacks, system failures, data breaches or other disruptions of Entergy’s and its subsidiaries’ or their suppliers’ physical infrastructure or technology systems may adversely affect Entergy’s business and results of operations. • Entergy and the Registrant Subsidiaries are subject to risks associated with their ability to obtain adequate insurance at acceptable costs. • Significant increases in commodity prices, other materials and supplies, and operation and maintenance expenses may adversely affect Entergy’s results of operations, financial condition, and liquidity. • The effect of higher purchased gas cost charges to customers taking gas service may adversely affect Entergy New Orleans’s results of operations and liquidity. • System Energy owns and, through an affiliate, operates a single nuclear generating facility, and it is dependent on sales to affiliated companies for all of its revenues.
Biggest changeAny reduction in the demand for electricity to power data centers or delays or unexpected costs associated with such projects may harm the growth prospects, future operating results and financial condition of Entergy and these Utility operating companies. • Entergy may not be able to attract, retain, and manage an appropriately staffed and qualified workforce, which could negatively affect Entergy or its subsidiaries’ results of operations. • Entergy and its subsidiaries, including the Utility operating companies and System Energy, may incur substantial costs (i) to fulfill their obligations related to environmental and other matters or (ii) related to reliability standards. • Entergy could be negatively affected by the effects of climate change, including physical risks, such as increased frequency and intensity of hurricanes, availability of water, droughts, and other severe weather and wildfires, and transition risks, such as environmental and regulatory obligations intended to combat the effects of climate change, including by compelling greenhouse gas emission reductions or reporting, or increasing clean or renewable energy requirements, or placing a price on greenhouse gas emissions. • Market performance, interest rate changes, and other changes may decrease the value of employee benefit plan assets, which then could require additional funding of such benefit plans and result in increased benefit plan costs. • The litigation environment in the states in which the Registrant Subsidiaries operate poses a significant risk to those businesses. • Terrorist attacks and sabotage, physical attacks, cyber attacks, system failures, data breaches or other disruptions of Entergy’s and its subsidiaries’ or their suppliers’ physical infrastructure or technology systems may adversely affect Entergy’s business and results of operations. • Entergy and the Registrant Subsidiaries are subject to risks associated with their ability to obtain adequate insurance at acceptable costs. • Significant increases in commodity prices, other materials and supplies, and operation and maintenance expenses may adversely affect Entergy’s results of operations, financial condition, and liquidity. • The effect of higher purchased gas cost charges to customers taking gas service may adversely affect Entergy New Orleans’s results of operations and liquidity. • System Energy owns and, through an affiliate, operates a single nuclear generating facility, and it is dependent on sales to affiliated companies for all of its revenues.
The facility has been in operation since January 2010; and • In November 2021, Entergy Louisiana and Elizabeth Solar, LLC executed a 20-year PPA for approximately 125 MW from a to-be-constructed solar photovoltaic energy facility located in Allen Parish, Louisiana.
The facility has been in operation since January 2010; • In November 2021, Entergy Louisiana and Elizabeth Solar, LLC executed a 20-year PPA for approximately 125 MW from a to-be-constructed solar photovoltaic energy facility located in Allen Parish, Louisiana.
In addition, the Utility operating companies are members of SERC Reliability Corporation (SERC), the Regional Entity with delegated authority from the North American Electric Reliability Corporation (NERC) for the purpose of proposing and enforcing Bulk Electric System reliability standards within 16 central and southeastern states.
In addition, the Utility operating companies are members of the SERC Reliability Corporation (SERC), the Regional Entity with delegated authority from the North American Electric Reliability Corporation (NERC) for the purpose of proposing and enforcing Bulk Electric System reliability standards within 16 central and southeastern states.
Coal Combustion Residuals In April 2015 the EPA published the final coal combustion residuals (CCR) rule regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes regulated under Resource Conservation and Recovery Act Subtitle D.
Coal Combustion Residuals In April 2015 the EPA published the final coal combustion residuals (CCR) rule (2015 CCR Rule) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes regulated under Resource Conservation and Recovery Act Subtitle D.
If Entergy’s or its subsidiaries’ technology systems, or those of critical suppliers or contractors or other third parties interconnected through the grid, were compromised and unable to detect or recover in a timely fashion to a normal state of operations, Entergy or its subsidiaries could be unable to perform critical business functions that are essential to the company’s well-being and could result in a loss of or inappropriate access to its confidential, sensitive, and proprietary information, including personal information of its customers, employees, suppliers, and others in Entergy’s care.
If Entergy’s or its subsidiaries’ technology systems, or those of critical suppliers or contractors or other third parties interconnected through the grid or otherwise, were compromised and unable to detect or recover in a timely fashion to a normal state of operations, Entergy or its subsidiaries could be unable to perform critical business functions that are essential to the company’s well-being and could result in a loss of or inappropriate access to its confidential, sensitive, and proprietary information, including personal information of its customers, employees, suppliers, and others in Entergy’s care.
Risks to achieving the 2030 and 2050 goals include, among other things, the ability to execute on renewable resource plans, regulatory approvals, customer demand for carbon-free energy that exceeds Entergy’s or its Utility operating companies’ ability to add lower carbon or carbon-free capacity, load growth, potential tariffs, carbon policy and regulation at the federal or state level, including mandates related to reliability standards, and supply chain costs and constraints.
Further risks to achieving the 2030 and 2050 goals include, among other things, the ability to execute on renewable resource plans, regulatory approvals, customer demand for carbon-free energy that exceeds Entergy’s or its Utility operating companies’ ability to add lower carbon or carbon-free capacity, load growth, potential tariffs, carbon policy and regulation at the federal or state level, including mandates related to reliability standards, and supply chain costs and constraints.
Entergy Texas is also subject to regulation by the PUCT as to the following: • retail rates and charges, including depreciation rates, and terms and conditions of service in unincorporated areas of its service territory, and in municipalities that have ceded jurisdiction to the PUCT; • fuel recovery, including reconciliations (audits) of the fuel adjustment charges; • service standards; • certification of certain transmission and generation projects; • utility service areas, including extensions into new areas; • avoided cost payments to non-exempt Qualifying Facilities; • net energy metering; and • utility mergers, sales/acquisitions/leases of plants over $10 million, sales of greater than 50% voting stock of utilities, and transfers of controlling interest in or operation of utilities. 271 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Regulation of the Nuclear Power Industry Atomic Energy Act of 1954 and Energy Reorganization Act of 1974 Under the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974, the operation of nuclear plants is heavily regulated by the NRC, which has broad power to impose licensing and safety-related requirements.
Entergy Texas is also subject to regulation by the PUCT as to the following: • retail rates and charges, including depreciation rates, and terms and conditions of service in unincorporated areas of its service territory, and in municipalities that have ceded jurisdiction to the PUCT; • fuel recovery, including reconciliations (audits) of the fuel adjustment charges; • service standards; • certification of certain transmission and generation projects; • utility service areas, including extensions into new areas; • avoided cost payments to non-exempt Qualifying Facilities; • net energy metering; and • utility mergers, sales/acquisitions/leases of plants over $10 million, sales of greater than 50% voting stock of utilities, and transfers of controlling interest in or operation of utilities. 274 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Regulation of the Nuclear Power Industry Atomic Energy Act of 1954 and Energy Reorganization Act of 1974 Under the Atomic Energy Act of 1954 and the Energy Reorganization Act of 1974, the operation of nuclear plants is heavily regulated by the NRC, which has broad power to impose licensing and safety-related requirements.
Entergy Louisiana’s electric and gas business is subject to regulation by the LPSC as to the following: • utility service; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the fuel adjustment clause, environmental adjustment charge, and purchased gas adjustment charge; • terms and conditions of service; • service standards; • certification of certain transmission projects; • certification of capacity acquisitions, both for owned capacity and for purchase power contracts that exceed either 5 MW or one year in term; • procurement process to acquire capacity at or above 50 MW; • audits of the energy efficiency rider; • avoided cost payment to non-exempt Qualifying Facilities; • integrated resource planning; • net energy metering; and • utility mergers and acquisitions and other changes of control. 270 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Entergy Mississippi is subject to regulation by the MPSC as to the following: • utility service; • utility service areas; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the energy cost recovery mechanism; • terms and conditions of service; • service standards; • certification of generating facilities, certain transmission projects, and certain distribution projects with construction costs greater than $10 million; • avoided cost payments to non-exempt Qualifying Facilities; • integrated resource planning; • net energy metering; and • utility mergers, acquisitions, and other changes of control.
Entergy Louisiana’s electric and gas business is subject to regulation by the LPSC as to the following: • utility service; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the fuel adjustment clause, environmental adjustment charge, and purchased gas adjustment charge; • terms and conditions of service; • service standards; • certification of certain transmission projects; • certification of capacity acquisitions, both for owned capacity and for purchase power contracts that exceed either 5 MW or one year in term; • procurement process to acquire capacity at or above 50 MW; • audits of the energy efficiency rider; • avoided cost payment to non-exempt Qualifying Facilities; • integrated resource planning; • net energy metering; and • utility mergers and acquisitions and other changes of control. 273 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Entergy Mississippi is subject to regulation by the MPSC as to the following: • utility service; • utility service areas; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the energy cost recovery mechanism; • terms and conditions of service; • service standards; • certification of generating facilities, certain transmission projects, and certain distribution projects with construction costs greater than $10 million; • avoided cost payments to non-exempt Qualifying Facilities; • integrated resource planning; • net energy metering; and • utility mergers, acquisitions, and other changes of control.
Further, FERC policies and regulation addressing cost responsibility for transmission projects, including transmission projects to interconnect new generation facilities, may potentially give rise to cash and financing-related risks as well as result in upward pressure on the retail rates of the Utility operating companies, which, in turn, may result in adverse actions by the Utility operating companies’ retail regulators.
Further, FERC policies and regulation addressing cost responsibility for transmission projects, including transmission projects to interconnect new generation facilities, may give rise to cash and financing-related risks as well as result in upward pressure on the retail rates of the Utility operating companies, which, in turn, may result in adverse actions by the Utility operating companies’ retail regulators.
In August 2023 the MPSC approved the PPA, and the facility is expected to reach commercial operation in May 2026; • In October 2022, Entergy Mississippi and Greer Solar, LLC executed a 20-year PPA for approximately 170 MW from a to-be-constructed solar photovoltaic energy facility located in Washington County, Mississippi.
In August 2023 the MPSC approved the PPA, and the facility is expected to reach commercial operation in 2026; • In October 2022, Entergy Mississippi and Greer Solar, LLC executed a 20-year PPA for approximately 170 MW from a to-be-constructed solar photovoltaic energy facility located in Washington County, Mississippi.
Any significant failure or malfunction of such information technology systems could result in loss of or inappropriate access to data or disruptions of operations. There have been attacks and threats of attacks on energy infrastructure by cyber actors, including those associated with foreign governments.
Any significant failure, misconfiguration, or malfunction of such information technology systems could result in loss of or inappropriate access to data or disruptions of operations. There have been attacks and threats of attacks on energy infrastructure by cyber actors, including those associated with foreign governments.
Entergy and its subsidiaries operate in a business that requires evolving information technology systems that include sophisticated data collection, processing systems, software, network infrastructure, and other technologies that are becoming more complex and may be subject to mandatory and prescriptive reliability and security standards.
Entergy and its subsidiaries operate in a business that requires evolving and advanced information technology systems that include sophisticated data collection, processing systems, software, network infrastructure, and other technologies that are becoming more complex and may be subject to mandatory and prescriptive reliability and security standards.
Entergy’s and the Utility operating companies’ business, results of operations, and financial condition could be adversely affected by events beyond their control, such as public health crises, natural disasters, geopolitical tensions, or other catastrophic events.
Entergy’s and the Utility operating companies’ business, results of operations, and financial condition could be adversely affected by events beyond their control, such as public health crises, natural disasters, wildfires, geopolitical tensions, or other catastrophic events.
Based on initial IRS guidance and current internal forecasts, Entergy and the Registrant Subsidiaries may become subject to the corporate alternative minimum tax included in the Inflation Reduction Act of 2022 beginning in the next two to four years.
Based on current IRS guidance and current internal forecasts, Entergy and the Registrant Subsidiaries may become subject to the corporate alternative minimum tax included in the Inflation Reduction Act of 2022 beginning in the next two to four years.
Entergy and the Utility operating companies could be adversely affected by various events beyond their control, including, without limitation, public health crises, natural disasters, geopolitical tensions and other political instability, or other catastrophic events.
Entergy and the Utility operating companies could be adversely affected by various events beyond their control, including, without limitation, public health crises, natural disasters, wildfires, geopolitical tensions and other political instability, or other catastrophic events.
Nuclear Operating, Shutdown, and Regulatory Risks • The results of operations, financial condition, and liquidity of Entergy Arkansas, Entergy Louisiana, and System Energy could be materially affected by the following: ◦ inability to consistently operate their nuclear power plants at high capacity factors; ◦ refueling outages that last materially longer than anticipated or unplanned outages; ◦ risks related to the purchase of uranium fuel (and its conversion, enrichment, and fabrication); ◦ the risk that the NRC will change or modify its regulations, suspend or revoke their licenses, or increase oversight of their nuclear plants; ◦ risks and costs related to operating and maintaining their nuclear power plants; ◦ the costs associated with the storage of the spent nuclear fuel, as well as the costs of and their ability to fully decommission their nuclear power plants; ◦ the potential requirement to pay substantial retrospective premiums and/or assessments imposed under the Price-Anderson Act and/or by Nuclear Electric Insurance Limited (NEIL) in the event of a nuclear incident, and losses not covered by insurance; ◦ the risk that the decommissioning trust fund assets may not be adequate to meet decommissioning obligations if market performance and other changes decrease the value of assets in the decommissioning trusts; and ◦ new or existing safety concerns regarding operating nuclear power plants and nuclear fuel.
Nuclear Operating, Shutdown, and Regulatory Risks • The results of operations, financial condition, and liquidity of Entergy Arkansas, Entergy Louisiana, and System Energy could be materially affected by the following: ◦ inability to consistently operate their nuclear power plants at high capacity factors; ◦ refueling outages that last materially longer than anticipated or unplanned outages; ◦ risks related to the purchase of uranium fuel (and its conversion, enrichment, and fabrication); ◦ the risk that the NRC will change or modify its regulations, suspend or revoke their licenses, or increase oversight of their nuclear plants; ◦ risks and costs related to operating and maintaining their nuclear power plants; ◦ the costs associated with the storage of the spent nuclear fuel, as well as the costs of and their ability to fully decommission their nuclear power plants; ◦ the potential requirement to pay substantial retrospective premiums and/or assessments imposed under the Price-Anderson Act and/or by Nuclear Electric Insurance Limited (NEIL) in the event of a nuclear incident, and losses not covered by insurance; ◦ the risk that the decommissioning trust fund assets may not be adequate to meet decommissioning obligations if market performance and other changes decrease the value of assets in the decommissioning trusts and/or actual decommissioning costs are higher than estimated; and ◦ new or existing safety concerns regarding operating nuclear power plants and nuclear fuel.
If needed, additional Powder River Basin (PRB) coal will be purchased through contracts with a term of less than one year to provide the remaining supply needs. Based on the high cost of alternate sources, modes of transportation, and infrastructure improvements necessary for its delivery, no alternative coal consumption is expected at Entergy Arkansas during 2024.
If needed, additional Powder River Basin (PRB) coal will be purchased through contracts with a term of less than one year to provide the remaining supply needs. Based on the high cost of alternate sources, modes of transportation, and infrastructure improvements necessary for its delivery, no alternative coal consumption is expected at Entergy Arkansas during 2025.
The extension 246 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy allows for recovery of approximately $95 million over ten years. In February 2023, the uncontested settlement was approved by the LPSC. Storm Cost Recovery See Note 2 to the financial statements for a discussion of Entergy Louisiana’s filings to recover storm-related costs.
The extension 247 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy allows for recovery of approximately $95 million over ten years. In February 2023 the uncontested settlement was approved by the LPSC. Storm Cost Recovery See Note 2 to the financial statements for a discussion of Entergy Louisiana’s filings to recover storm-related costs.
In response to Entergy Arkansas’s application for a general change in rates in 244 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 2015, the APSC approved the formula rate plan tariff proposed by Entergy Arkansas including its use of a projected year test period and an initial five-year term.
In response to Entergy Arkansas’s application for a general change in rates in 245 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 2015, the APSC approved the formula rate plan tariff proposed by Entergy Arkansas including its use of a projected year test period and an initial five-year term.
The RFPs issued by the Utility operating companies have sought resources needed to meet near-term MISO reliability requirements as well as long-term requirements through a broad range of wholesale power 253 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy products, including long-term contractual products and asset acquisitions.
The RFPs issued by the Utility operating companies have sought resources needed to meet near-term MISO reliability requirements as well as long-term requirements through a broad range of wholesale power 255 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy products, including long-term contractual products and asset acquisitions.
In August 2023 the MPSC approved the PPA, and the facility is expected to reach commercial operation in December 2026; • In October 2022, Entergy Arkansas and Flat Fork Solar, LLC executed a 20-year PPA for approximately 200 MW from a to-be-constructed solar photovoltaic energy facility located in St. Francis County, Arkansas.
In August 2023 the MPSC approved the PPA, and the facility is expected to reach commercial operation as early as December 2026; • In October 2022, Entergy Arkansas and Flat Fork Solar, LLC executed a 20-year PPA for approximately 200 MW from a to-be-constructed solar photovoltaic energy facility located in St. Francis County, Arkansas.
If needed, additional PRB coal will be purchased through contracts with a term of less than one year to provide the remaining supply needs. For the same reasons as the Entergy Arkansas plants, no alternative coal consumption is expected at Nelson Unit 6 during 2024.
If needed, additional PRB coal will be purchased through contracts with a term of less than one year to provide the remaining supply needs. For the same reasons as the Entergy Arkansas plants, no alternative coal consumption is expected at Nelson Unit 6 during 2025.
These subsidiaries have been, and continue to be, involved in litigation to recover the damages caused by the DOE’s delay in performance. See Note 8 to the financial statements for discussion of final judgments recorded by Entergy in 2021, 2022, and 2023 related to Entergy’s nuclear owner/licensee subsidiaries’ litigation with the DOE.
These subsidiaries have been, and continue to be, involved in litigation to recover the damages caused by the DOE’s delay in performance. See Note 8 to the financial statements for discussion of final judgments recorded by Entergy in 2022, 2023, and 2024 related to Entergy’s nuclear owner/licensee subsidiaries’ litigation with the DOE.
Some of the Utility’s gas-fired plants are also capable of using fuel oil, if necessary. Although based on current economics the Utility does not expect fuel oil use in 2024, it is possible that various operational events including weather or pipeline maintenance may require the use of fuel oil.
Some of the Utility’s gas-fired plants are also capable of using fuel oil, if necessary. Although based on current economics the Utility does not expect fuel oil use in 2025, it is possible that various operational events including weather or pipeline maintenance may require the use of fuel oil.
Coal will be transported to Arkansas via an existing Union Pacific transportation agreement that is expected to provide all of Entergy Arkansas’s rail transportation requirements for 2024. Entergy Louisiana has committed to three two- to three-year contracts that will supply at least 90% of Nelson Unit 6 coal needs in 2024.
Coal will be transported to Arkansas via an existing Union Pacific transportation agreement that is expected to provide all of Entergy Arkansas’s rail transportation requirements for 2025. Entergy Louisiana has committed to three two- to three-year contracts that will supply at least 90% of Nelson Unit 6 coal needs in 2025.
Entergy and the Utility operating companies cannot predict if or when they may be subject to changes in legislation or regulation, or the extent and timing of reductions of the cost of distributed energy resources, nor can they predict the impact of these changes on their results of operations, financial position, or cash flows.
Entergy and the Utility operating companies cannot predict if or when they may be subject to changes in legislation, regulation, or governmental policy, or the extent and timing of reductions of the cost of distributed energy resources, nor can they predict the impact of these changes on their results of operations, financial position, or cash flows.
In September 2023 the APSC approved the PPA, and the facility is expected to reach commercial operation in September 2025; • In October 2022, Entergy Arkansas and Forgeview Solar, LLC executed a 15-year PPA for approximately 200 MW from a to-be-constructed solar photovoltaic energy facility located in Mississippi County, Arkansas.
In September 2023 the APSC approved the PPA, and the facility is expected to reach commercial operation as early as September 2025; • In October 2022, Entergy Arkansas and Forgeview Solar, LLC executed a 15-year PPA for approximately 200 MW from a to-be-constructed solar photovoltaic energy facility located in Mississippi County, Arkansas.
Gas Property As of December 31, 2023, Entergy New Orleans distributed and transported natural gas for distribution within New Orleans, Louisiana, through approximately 2,600 miles of gas pipeline. As of December 31, 2023, the gas properties of Entergy Louisiana, which are located in and around Baton Rouge, Louisiana, were not material to Entergy Louisiana’s financial position.
Gas Property As of December 31, 2024, Entergy New Orleans distributed and transported natural gas for distribution within New Orleans, Louisiana, through approximately 2,600 miles of gas pipeline. As of December 31, 2024, the gas properties of Entergy Louisiana, which are located in and around Baton Rouge, Louisiana, were not material to Entergy Louisiana’s financial position.
Entergy offers all of its generation into the MISO energy market on a day-ahead and real-time basis and bids for power in the MISO energy market to serve the demand of its customers, with MISO making dispatch decisions. The MISO purchases metric provided for 2023 is not projected for 2024.
Entergy offers all of its generation into the MISO energy market on a day-ahead and real-time basis and bids for power in the MISO energy market to serve the demand of its customers, with MISO making dispatch decisions. The MISO purchases metric provided for 2024 is not projected for 2025.
Entergy’s talent development infrastructure, which includes a combination of business function-specific and enterprise-wide learning and development programs, is designed to ensure Entergy has qualified staff with the skills, experiences, and behaviors needed to perform today and prepare for the future.
Entergy’s talent development infrastructure, which includes a combination of business function-specific and enterprise-wide learning and development programs, is designed to ensure Entergy has qualified employees with the skills, experiences, and behaviors needed to perform today and prepare for the future.
These initiatives include: • reconsideration and revision of ambient air quality standards downward which could lead to additional areas of nonattainment; • designation by the EPA and state environmental agencies of areas that are not in attainment with national ambient air quality standards; • introduction of bills in Congress and development of regulations by the EPA proposing further limits on SO 2 , mercury, carbon dioxide, and other air emissions.
These initiatives have included: • reconsideration and revision of ambient air quality standards downward which could lead to additional areas of nonattainment; • designation by the EPA and state environmental agencies of areas that are not in attainment with national ambient air quality standards; • introduction of bills in Congress and development of regulations by the EPA proposing further limits on SO 2 , mercury, carbon dioxide, and other air emissions.
Notwithstanding this reference or any references to the website in this report, the contents of the website are not incorporated into this report. 284 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy Item 1A.
Notwithstanding this reference or any references to the website in this report, the contents of the website are not incorporated into this report. 288 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy Item 1A.
Accidents and other unforeseen problems at nuclear power plants have occurred both in the United States and elsewhere. As required by the Price-Anderson Act, the Utility operating companies and System Energy carry the maximum available amount of primary nuclear off-site liability insurance with American Nuclear Insurers, which as of January 1, 2024 is $500 million for each operating site.
Accidents and other unforeseen problems at nuclear power plants have occurred both in the United States and elsewhere. As required by the Price-Anderson Act, the Utility operating companies and System Energy carry the maximum available amount of primary nuclear off-site liability insurance with American Nuclear Insurers, which is $500 million for each operating site.
Additionally, technological advances in energy efficiency and distributed energy resources are reducing the costs of these technologies and, together with ongoing state and federal subsidies, the increasing penetration of these technologies could result in reduced sales by the Utility operating companies.
Additionally, technological advances in energy efficiency and distributed energy resources are reducing the costs of these technologies and, together with current state and federal subsidies, the increasing penetration of these technologies could result in reduced sales by the Utility operating companies.
The Office of the Chief Executive, which includes the Senior Vice President and Chief Human Resources Officer, ensures annual business plans are designed to support Entergy’s talent objectives, reviews workforce-related metrics, and regularly discusses the development, succession planning, and performance of their direct reports and other company officers. Safety Entergy’s safety objective is: Everyone Safe. All Day. Every Day.
The Office of the Chief Executive, which includes Entergy’s Chief Human Resources Officer, ensures annual business plans are designed to support Entergy’s talent objectives, reviews workforce-related metrics, and regularly discusses the development, succession planning, and performance of their direct reports and other company officers. Safety Entergy’s safety objective is: Everyone Safe. All Day. Every Day.
The facility is located in Choctaw County and has been in operation since July 2003; • In November 2020, Entergy Louisiana’s acquisition of the Washington Parish Energy Center is a 361 MW natural gas-fired peaking power plant approximately 60 miles north of New Orleans on a site Entergy Louisiana purchased from Calpine in 2019.
The facility is located in Choctaw County and has been in operation since July 2003; • In November 2020, Entergy Louisiana acquired the Washington Parish Energy Center, a 361 MW natural gas-fired peaking power plant. The facility is located approximately 60 miles north of New Orleans on a site Entergy Louisiana purchased from Calpine in 2019.
Prior to issuance of the FIP, in February 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.
Prior to issuance of the FIP, in February 2023 the EPA issued related 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.
In addition, changes to regulatory policies, such as those that allow customers to directly access the market to procure wholesale energy or those that incentivize development and utilization of new, developing, or alternative sources of generation, could, and in some instances, have reduced sales, and other non-traditional procurements, such as virtual purchase power agreements, could, and in some instances have limited growth opportunities or reduced sales at the Utility operating companies.
In addition, changes to regulatory policies, such as those that allow customers to directly access the market to procure wholesale energy or those that incentivize development and utilization of new, developing, or alternative sources of generation, could, and in some instances, have already reduced sales, and other non-traditional procurements, such as virtual purchase power agreements or “behind the meter” generation solutions, could, and in some instances have already limited growth opportunities or reduced sales at the Utility operating companies.
Additionally, some of the Utility operating companies also offer customer services and products that include generating and demand response resources that are interconnected to both the distribution and transmission systems and that also participate in the wholesale market. Entergy’s Utility operating companies are MISO market participants and the companies’ transmission systems are interconnected with those of many neighboring utilities.
Additionally, some of the Utility operating companies also offer customer services and products that include load-modifying and demand response resources that are interconnected to both the distribution and transmission systems and that also participate in the wholesale market. Entergy’s Utility operating companies are MISO market participants and the companies’ transmission systems are interconnected with those of many neighboring utilities.
The facility operated as a scrap salvage business during the 1970s to the 1990s. In May 2018 the EPA investigated the site surface and sub-surface soils, and in November 2018 the EPA conducted a removal action, including disposal of PCB contaminated soils. Entergy responded to the EPA’s information requests in May and July 2019.
Doyle Salvage facility in Leonard, Texas. The facility operated as a scrap salvage business during the 1970s to the 1990s. In May 2018 the EPA investigated the site surface and sub-surface soils, and in November 2018 the EPA conducted a removal action, including disposal of PCB contaminated soils. Entergy responded to the EPA’s information requests in May and July 2019.
Certain of the suppliers and service providers are located in or dependent upon foreign countries, such as Russia, and international sanctions or tariffs impacting trade with such countries could further restrict the ability of such suppliers or service providers to continue to supply fuel or provide such services at acceptable prices or at all.
Certain of the suppliers and service providers are located in or dependent upon foreign countries, such as Russia, and international sanctions, bans, retaliatory actions, or tariffs impacting trade with such countries could further restrict the ability of such suppliers or service providers to continue to supply fuel or provide such services at acceptable prices or at all.
Entergy and its subsidiaries’ future prospects and results of operations significantly depend on their ability to successfully implement their business strategies, including achieving Entergy’s climate goals and commitments, which are subject to business, regulatory, economic, shareholder activism and other risks and uncertainties, many of which are beyond their control.
Entergy and its subsidiaries’ future prospects and results of operations significantly depend on their ability to successfully implement their business strategies, including executing on their growth strategy and achieving Entergy’s climate goals and commitments, which are subject to business, regulatory, economic, shareholder activism and other risks and uncertainties, many of which are beyond their control.
The following table illustrates the Utility operating companies’ 2023 combined electric sales volume as a percentage of total electric sales volume, and 2023 combined electric revenues as a percentage of total 2023 electric revenue, each by customer class.
The following table illustrates the Utility operating companies’ 2024 combined electric sales volume as a percentage of total electric sales volume, and 2024 combined electric revenues as a percentage of total 2024 electric revenue, each by customer class.
For Entergy New Orleans, 87% of operating revenue was derived from the electric utility business and 13% from the natural gas distribution business in 2023.
For Entergy New Orleans, 87% of operating revenue was derived from the electric utility business and 13% from the natural gas distribution business in 2024.
Entergy is providing the address to its internet site solely for the information of investors and does not intend the address to be an active link.
Entergy is providing the address to its internet website solely for the information of investors and does not intend the address to be an active link.
Through 2023, Entergy’s subsidiaries have won and collected on judgments against the government totaling approximately $1 billion. Pending DOE acceptance and disposal of spent nuclear fuel, the owners of nuclear plants are providing their own spent fuel storage.
Through 2024 , Entergy’s subsidiaries have won and collected on judgments against the government totaling approximately $1.2 billion. Pending DOE acceptance and disposal of spent nuclear fuel, the owners of nuclear plants are providing their own spent fuel storage.
The hedging and risk management practices of the Utility operating companies and Entergy's non-utility business are exposed to the risk that counterparties that owe Entergy and its subsidiaries money, energy, or other commodities will not perform their obligations.
The risk management practices of the Utility operating companies and Entergy's non-utility business are exposed to the risk that counterparties that owe Entergy and its subsidiaries performance of certain obligations, money, energy, or other commodities will not perform their obligations.
As an operator of critical infrastructure, Entergy and its subsidiaries face a heightened risk of physical attacks or acts or threats of terrorism, cyber attacks, including ransomware attacks, and data breaches, whether as a direct or indirect act against one of Entergy’s generation, transmission or distribution facilities, operations centers, infrastructure, or information technology systems used to manage, monitor, and transport power to customers and perform day-to-day business functions as well as against the systems of critical suppliers and contractors or other third parties interconnected through the grid.
As an operator of critical infrastructure, Entergy and its subsidiaries face a heightened risk of physical attacks or acts or threats of terrorism, cyber attacks, including ransomware and phishing attacks, business email compromises, viruses, malicious code, and data breaches, whether as a direct or indirect act against one of Entergy’s generation, transmission or distribution facilities, operations centers, infrastructure, or information technology systems used to manage, monitor, and transport power to customers and perform day-to-day business functions as well as against the systems of critical suppliers and contractors or other third parties interconnected through the grid.
Calpine began construction on the plant in early 2019 and Entergy Louisiana purchased the plant upon completion in November 2020; • In June 2021, Entergy Texas’s acquisition of the Hardin County Peaking Facility, an existing 147 MW simple-cycle gas-fired peaking power plant in Kountze, Texas, previously owned by East Texas Electric Cooperative.
Calpine began construction on the plant in early 2019 and Entergy Louisiana purchased the plant upon completion in November 2020; • In June 2021, Entergy Texas acquired the Hardin County Peaking Facility, an existing 147 MW simple-cycle gas-fired peaking power plant in Kountze, Texas, previously owned by East Texas Electric Cooperative.
The parties reached an uncontested settlement which, among other things, recommended approval of 120 MW of natural gas fired distributed generation and an additional 30 MW of solar and battery distributed generation, for a total distributed generation program of 150 MW.
In June 2022 the parties reached an uncontested settlement which, among other things, recommended approval of 120 MW of natural gas fired distributed generation and an additional 30 MW of solar and battery distributed generation, for a total distributed generation program of 150 MW.
Circuit Court of Appeals ordered the DOE to submit a proposal to Congress to reset the fee to zero until the DOE complies with the Nuclear 272 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Waste Policy Act or Congress enacts an alternative waste disposal plan.
Circuit ordered the DOE to submit a proposal to Congress to reset the fee to zero until the DOE complies with the Nuclear Waste Policy Act or 275 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Congress enacts an alternative waste disposal plan.
Similar to the LDEQ, the Arkansas Department of Energy and Environment, Division of Environmental Quality (ADEQ) did not meet the July 31, 2021 SIP submission deadline, but subsequently submitted it to the EPA for review.
Similar to the LDEQ, the Arkansas Department of Energy and Environment, Division of Environmental Quality (ADEQ) did not meet the July 31, 2021 SIP submission deadline, but subsequently submitted a final SIP to the EPA for review.
Any of the foregoing, whether occurring locally, nationally, or globally, and the resulting effects thereof could lead to disruption of the general economy, impacts on the customers of the Utility operating companies, and disruption of the operations of Entergy’s subsidiaries, due to, among other things: • supply chain, vendor, and contractor disruptions, including shortages or delays in the availability of key components, parts, and supplies such as electronic components and solar panels; • delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed refueling and maintenance outages; • adverse impacts on liquidity and cash flows, including through declining sales, reduced revenues, delays in receipts of customer payments, or increased bad debt expense; • delays in regulatory proceedings; • regulatory outcomes that require the Utility operating companies to postpone planned investments and otherwise reduce costs due to, for example, the impact of a public health crises or such other catastrophic events on their customers; 288 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy • workforce availability challenges, including, for example, from infections, health, or safety issues resulting from a public health crisis; • increased storm recovery costs; • increased cybersecurity risks as a result of many employees telecommuting; • volatility in the credit or capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available credit facilities on favorable terms), which could in turn, cause a decrease in the value of its defined benefit pension or decommissioning trust funds; • adverse impacts on Entergy’s credit metrics or ratings; • governmental mandates in response to any such event; or • other adverse impacts on their ability to execute on business strategies and initiatives.
Any of the foregoing, whether occurring locally, nationally, or globally, and the resulting effects thereof could lead to disruption of the general economy, impacts on the customers of the Utility operating companies, and disruption of the operations of Entergy’s subsidiaries, due to, among other things: • supply chain, vendor, and contractor disruptions or other impacts, including those relative to any trade or tariff issues, as well as any shortages or delays in the availability of key components, parts, and supplies such as electronic components, steel, aluminum, and solar panels; • delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed refueling and maintenance outages; • adverse impacts on liquidity and cash flows, including through declining sales, reduced revenues, delays in receipts of customer payments, or increased bad debt expense; • delays in regulatory proceedings; • regulatory outcomes that require the Utility operating companies to postpone planned investments and otherwise reduce costs due to, for example, the impact of a public health crises or such other catastrophic events on their customers; • workforce availability challenges, including, for example, from infections, health, or safety issues resulting from a public health crisis; • increased storm recovery costs; • increased cybersecurity risks as a result of many employees telecommuting and working partially remotely or geopolitical risks; • volatility in the credit or capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available credit facilities on favorable terms), which could in turn, cause a decrease in the value of its defined benefit pension and welfare benefit plan trusts or decommissioning trust funds; • litigation; • adverse impacts on Entergy’s credit metrics or ratings; 300 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy • governmental mandates in response to any such event; or • other adverse impacts on their ability to execute on business strategies and initiatives.
Further, changes in tax legislation or guidance, or uncertainties regarding interpretation of such tax legislation or guidance, could impact interpretation of and negotiations around certain contractual arrangements with counterparties, which could result in unfavorable changes to such arrangements or delays.
Further, changes in tax legislation or guidance, or uncertainties regarding the repeal, continuation, or interpretation of such tax legislation or guidance, could impact interpretation of and negotiations around certain contractual arrangements with counterparties, which could result in unfavorable changes to such arrangements or delays.
Entergy Arkansas is the only one of the Utility operating companies that generated electric power with nuclear fuel prior to that date and has a recorded liability as of December 31, 2023 of $205.2 million for the one-time fee. The fees payable to the DOE may be adjusted in the future to assure full recovery.
Entergy Arkansas is the only one of the Utility operating companies that generated electric power with nuclear fuel prior to that date and has a recorded liability as of December 31, 2024 of $216 million for the one-time fee. The fees payable to the DOE may be adjusted in the future to assure full recovery.
Utility Regulatory Risks • The terms and conditions of service, including electric and gas rates, of the Registrant Subsidiaries are determined through regulatory approval proceedings that can be lengthy and subject to appeal, potentially resulting in lengthy litigation, and uncertainty as to ultimate results. • Entergy’s business could experience adverse effects related to changes to state or federal legislation or regulation, or experience risks associated with participation in the MISO markets and allocation of transmission upgrade costs. • The Utility operating companies recover fuel, purchased power, and associated costs through rate mechanisms that are subject to risks of delay or disallowance in regulatory proceedings. • A delay or failure in recovering amounts for storm restoration costs incurred as a result of severe weather could have material effects on Entergy and its Utility operating companies affected by severe weather. • Weather, economic conditions, technological developments, and other factors may have a material impact on electricity and gas usage and otherwise materially affect the Utility operating companies’ results of operations.
Utility Regulatory Risks • The terms and conditions of service, including electric and gas rates, of the Registrant Subsidiaries are determined through regulatory approval proceedings that can be lengthy and subject to appeal, potentially resulting in lengthy litigation, and uncertainty as to ultimate results. • Entergy’s business could experience adverse effects related to changes to state or federal legislation or regulation, including increased tariffs, as well as changes to governmental policies and programs, including tax credits, loans, grants, guarantees, and other subsidies, or experience risks associated with participation in the MISO markets and allocation of transmission upgrade costs. • The Utility operating companies recover fuel, purchased power, and associated costs through rate mechanisms that are subject to risks of delay or disallowance in regulatory proceedings. • A delay or failure in recovering amounts for storm restoration costs incurred as a result of severe weather could have material effects on Entergy and its Utility operating companies affected by severe weather. • Weather, economic conditions, technological developments, and other factors may have a material impact on electricity and gas usage and otherwise materially affect the Utility operating companies’ results of operations.
In September 2019 the PUCT initiated a rulemaking to promulgate a generation cost recovery rider rule, implementing legislation passed in the 2019 Texas legislative session intended to allow electric utilities to recover generation investments between base rate proceedings. The PUCT approved the final rule in July 2020.
In September 2019 the PUCT initiated a rulemaking to promulgate a generation cost recovery rider rule, implementing legislation passed in the 2019 Texas legislative session intended to allow electric utilities to recover generation investments between base rate proceedings.
In addition, the FERC regulates the MISO RTO, an independent entity that maintains functional control over the combined transmission systems of its members and administers wholesale energy, capacity, and ancillary services markets for market participants in the MISO region, including the Utility operating companies.
In addition, the FERC also regulates wholesale power sales between the Utility operating companies. Moreover, the FERC regulates the MISO RTO, an independent entity that maintains functional control over the combined transmission systems of its members and administers wholesale energy, capacity, and ancillary services markets for market participants in the MISO region, including the Utility operating companies.
Although Entergy’s nuclear fuel contract portfolio provides a degree of hedging against market risks for several years, costs for nuclear fuel in the future cannot be predicted with certainty due to inherent market uncertainties, as well as uncertainties arising from geopolitical conflicts, and price changes could materially affect the liquidity, financial condition, and results of operations of certain of the Utility operating companies and System Energy.
Although Entergy’s nuclear fuel contract portfolio provides a degree of hedging against market risks for several years, costs for nuclear fuel in the future cannot be predicted with certainty due to inherent market uncertainties, as well as uncertainties arising from the factors described in the immediately preceding sentence, and price changes could materially affect the liquidity, financial condition, and results of operations of certain of the Utility operating companies and System Energy.
(b) Based on $1.9 billion in accumulated deferred income taxes at a 0% cost rate included in the weighted-average cost of capital calculation.
(b) Based on $2.0 billion in accumulated deferred income taxes at a 0% cost rate included in the weighted-average cost of capital calculation.
Other Procurements From Third Parties The Utility operating companies have also made resource acquisitions outside of the RFP process and have also entered various limited- and long-term contracts in recent years as a result of bilateral negotiations, including among others: • In March 2016, Entergy Arkansas’s (Power Block 2), Entergy Louisiana’s (Power Blocks 3 and 4), and Entergy New Orleans’s (Power Block 1) acquisitions of the 1,980 MW (summer rating), natural gas-fired, combined-cycle gas turbine Union Power Station power blocks, each rated at 495 MW (summer rating).
Other Procurements From Third Parties The Utility operating companies have also made resource acquisitions outside of the RFP process and have also entered various limited- and long-term contracts in recent years as a result of bilateral negotiations, including among others: • In March 2016, Entergy Arkansas (Power Block 2), Entergy Louisiana (Power Blocks 3 and 4), and Entergy New Orleans (Power Block 1) completed their respective acquisitions of the 1,980 MW (summer rating), natural gas-fired, combined-cycle gas turbine Union Power Station power blocks, each rated at 495 MW (summer rating).
The Utility operating companies also may not realize anticipated or expected growth in industrial sales, such as from electrification opportunities to help such customers achieve their environmental and sustainability goals.
The Utility operating companies also may not realize anticipated or expected growth in industrial sales, such as from large data center customers or electrification opportunities to help such customers achieve their environmental sustainability goals.
The Utility operating companies’ long-term resource strategy (Portfolio Transformation Strategy) calls for the bulk of capacity needs to be met through long-term resources, whether owned or contracted. Over the past decade, the Portfolio Transformation Strategy has resulted in the addition of about 7,963 MW of new long-term resources and the deactivation of about 4,241 MW of legacy generation.
The Utility operating companies’ long-term resource strategy (Portfolio Transformation Strategy) calls for the bulk of capacity needs to be met through long-term resources, whether owned or contracted. Over the past decade, the Portfolio Transformation Strategy has resulted in the addition of about 8,702 MW of new long-term resources and the deactivation of about 4,242 MW of legacy generation.
Due in part to the recent increase in frequency and intensity of major storm activity along the Gulf Coast, Entergy is pursuing plans to accelerate investments that would enhance the resilience of the electric systems of the Utility operating companies to enable them to better withstand major storms or other significant weather events, to mitigate the cost of restoration of the electric system after major storms or other significant events, to enable more rapid restoration of electricity after major storm or other significant adverse events, and to deliver electricity to critical customers more immediately after such events.
Due in part to the recent increase in frequency and intensity of major storm activity along the Gulf Coast, Entergy has and continues to pursue and execute on plans to accelerate investments that would enhance the resilience of the electric systems of the Utility operating companies to enable them to better withstand major storms or other significant events, to mitigate the cost of restoration of the electric system after major storms or other significant events, to enable more rapid restoration of electricity after major storm or other significant adverse events, and to deliver electricity to critical customers more immediately after such events.
In November 2019, LS Power sold and transferred the Carville Energy Center and facility to Argo Infrastructure Partners, which included the power purchase agreement; • In November 2016, Entergy Louisiana and Occidental Chemical Corporation executed a 10-year agreement for 500 MW from the Taft Cogeneration facility located in Hahnville, Louisiana.
In November 2019, LS Power sold and transferred the Carville Energy Center and facility to Argo Infrastructure Partners, which included the power purchase agreement. The PPA delivery term began in June 2022; • In November 2016, Entergy Louisiana and Occidental Chemical Corporation executed a 10-year agreement for 500 MW from the Taft Cogeneration facility located in Hahnville, Louisiana.
In addition, the retail regulatory treatment of the expanded tax credits and corporate alternative minimum tax included in the Inflation Reduction Act of 2022 could materially impact Entergy’s future cash flows, and this legislation and pending interpretive guidance could result in unintended consequences not yet identified that could have a material adverse impact on Entergy’s financial results and future cash flows.
In addition, the retail regulatory treatment of the expanded tax credits and corporate alternative minimum tax included in the Inflation Reduction Act of 2022, or any other changes to or repeal of such tax credits, could materially impact Entergy’s future cash flows, and this legislation and pending interpretive guidance could result in unintended consequences not yet identified that could have a material adverse impact on Entergy’s financial results and future cash flows.
(c) Based on December 31, 2022 test year and excludes approximately $300 million of transmission plant investment included in the transmission recovery mechanism and approximately $200 million of distribution plant investment included in the distribution recovery mechanism, as well as approximately $400 million of net accumulated deferred tax liability items included in the tax reform adjustment mechanism.
(c) Based on December 31, 2023 test year and excludes approximately $100 million of transmission plant investment included in the transmission recovery mechanism and approximately $300 million of distribution plant investment included in the distribution recovery mechanism, as well as approximately $400 million of net accumulated deferred tax liability items included in the tax adjustment mechanism.
The facility is expected to reach commercial operation as early as December 2025; and • In October 2023, Entergy Louisiana and Mondu Solar, LLC executed a 20-year PPA for approximately 100 MW from a to-be-constructed solar photovoltaic energy facility located in Point Coupee Parish, Louisiana.
In January 2024 the LPSC approved the PPA, and the facility is expected to reach commercial operation as early as December 2027; and • In October 2023, Entergy Louisiana and Mondu Solar, LLC executed a 20-year PPA for approximately 100 MW from a to-be-constructed solar photovoltaic energy facility located in Point Coupee Parish, Louisiana.
The Utility has a diverse power generation portfolio, including increasingly carbon-free energy sources, which is consistent with Entergy’s strong support for the environment. 241 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Customers As of December 31, 2023, the Utility operating companies provided retail electric and gas service to customers in Arkansas, Louisiana, Mississippi, and Texas, as follows: Electric Customers Gas Customers Area Served (In Thousands) (%) (In Thousands) (%) Entergy Arkansas Portions of Arkansas 730 24 Entergy Louisiana Portions of Louisiana 1,105 37 96 47 Entergy Mississippi Portions of Mississippi 459 15 Entergy New Orleans City of New Orleans 208 7 108 53 Entergy Texas Portions of Texas 512 17 Total 3,014 100 204 100 Electric and Natural Gas Energy Sales Electric Energy Sales The total electric energy sales of the Utility operating companies are subject to seasonal fluctuations, with the peak sales period normally occurring during the third quarter of each year.
The Utility has a diverse power generation portfolio, including increasingly carbon-free energy sources, which is consistent with Entergy’s strong support for the environment. 242 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Customers As of December 31, 2024, the Utility operating companies provided retail electric and gas service to customers in Arkansas, Louisiana, Mississippi, and Texas, as follows: Electric Customers Gas Customers Area Served (In Thousands) (%) (In Thousands) (%) Entergy Arkansas Portions of Arkansas 735 24 Entergy Louisiana Portions of Louisiana 1,110 37 96 47 Entergy Mississippi Portions of Mississippi 459 15 Entergy New Orleans City of New Orleans 209 7 108 53 Entergy Texas Portions of Texas 524 17 Total 3,037 100 204 100 Electric and Natural Gas Energy Sales Electric Energy Sales The total electric energy sales of the Utility operating companies are subject to seasonal fluctuations, with the peak sales period normally occurring during the third quarter of each year.
Following is data concerning Entergy New Orleans’s 2023 retail operating revenue sources: Customer Class % of Electric Operating Revenue % of Natural Gas Operating Revenue Residential 48 51 Commercial 35 26 Industrial 5 17 Governmental/Municipal 12 6 Retail Rate Regulation General (Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, System Energy) Each Utility operating company regularly participates in retail rate proceedings.
Following is data concerning Entergy New Orleans’s 2024 retail operating revenue sources: Customer Class % of Electric Operating Revenue % of Natural Gas Operating Revenue Residential 48 56 Commercial 35 26 Industrial 5 5 Governmental/Municipal 12 13 Retail Rate Regulation General (Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, System Energy) Each Utility operating company regularly participates in retail rate proceedings.
Entergy Louisiana is allowed to recover through the fuel adjustment clause at 4.6 cents per kWh for the energy related to its retained portion of these costs. Alternatively, Entergy Louisiana may sell such energy to non-affiliated parties at prices above the fuel adjustment clause recovery amount, subject to the LPSC’s approval.
Entergy Louisiana was also allowed to recover through the fuel adjustment clause at 4.6 cents per kWh for the energy related to its retained portion of these costs. Alternatively, Entergy Louisiana was permitted to sell such energy to non-affiliated parties at prices above the fuel adjustment clause amount, subject to the LPSC’s approval.
Entergy owns and operates power plants with approximately 24,000 MW of electric generating capacity. Entergy delivers electricity to approximately 3 million Utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy had annual revenues of $12.1 billion in 2023 and had approximately 12,000 employees as of December 31, 2023. Entergy operates primarily through a single reportable segment, Utility.
Entergy owns and operates power plants with approximately 25,000 MW of electric generating capacity. Entergy delivers electricity to approximately 3 million Utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy had annual revenues of $11.9 billion in 2024 and had approximately 12,000 employees as of December 31, 2024. Entergy operates primarily through a single reportable segment, Utility.
Other In June 2022 the APSC approved Entergy Arkansas’s compliance tariff filing for a proposed green tariff designed to help participating customers meet their renewable and sustainability goals and to enhance economic development efforts in Arkansas. The APSC approved an initial offering of 100 MW of solar capacity to be made available under this tariff.
Other In June 2022 the APSC approved Entergy Arkansas’s compliance tariff filing for a proposed green tariff designed to help participating customers meet their renewable and sustainability goals and to enhance economic development efforts in Arkansas. The APSC has approved offerings of 280 MW of solar capacity to be made available under this tariff.
In May 2023 the EPA released a proposed rule establishing management standards for legacy CCR surface impoundments (i.e., inactive surface impoundments at inactive power plants) and establishing a new class of units referred to as CCR management units (i.e., non-containerized CCR located at a regulated CCR facility).
In May 2024 the EPA finalized a rule (2024 CCR Rule) establishing management standards for legacy CCR surface impoundments (i.e., inactive surface impoundments at inactive power plants) and establishing a new class of units referred to as CCR management units (CCRMUs) (i.e., non-containerized CCR located at a regulated CCR facility).
Federal, state, and local authorities continually revise these laws and regulations, and the laws and regulations are subject to judicial interpretation and to the permitting and enforcement discretion vested in the implementing agencies. Developing and implementing plans for facility compliance with these requirements can lead to capital, personnel, and operation and maintenance expenditures.
Federal, state, and local authorities continually revise these laws and regulations, and the laws and regulations are subject to judicial interpretation and to the implementing agencies’ permitting and enforcement decisions. Developing and implementing plans for facility compliance with these requirements can lead to capital, personnel, and operation and maintenance expenditures.
Natural Gas The Utility operating companies have long-term firm and short-term interruptible gas contracts for both supply and transportation. Over 70% of the Utility operating companies’ power plants maintain some level of long-term firm transportation.
Natural Gas The Utility operating companies have long-term and short-term firm and interruptible gas contracts for both supply and transportation. Over 70% of the Utility operating companies’ power plants maintain some level of long-term firm transportation. Long-term, short-term, and spot-market purchases satisfy gas requirements.
These programs include: • new source review and preconstruction permits for new sources of criteria air pollutants, greenhouse gases, and significant modifications to existing facilities; • acid rain program for control of sulfur dioxide (SO 2 ) and nitrogen oxides (NO x ); • nonattainment area programs for control of criteria air pollutants, which could include fee assessments for air pollutant emission sources under Section 185 of the Clean Air Act if attainment is not reached in a timely manner; • hazardous air pollutant emissions reduction programs; 275 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy • Interstate Air Transport; • operating permit programs and enforcement of these and other Clean Air Act programs; • Regional Haze programs; and • new and existing source standards for greenhouse gas and other air emissions.
These programs include: • new source review and preconstruction permits for new sources of criteria air pollutants, greenhouse gases, and significant modifications to existing facilities; • acid rain program for control of sulfur dioxide (SO 2 ) and nitrogen oxides (NO x ); • nonattainment area programs for control of criteria air pollutants, which could include fee assessments for air pollutant emission sources under Section 185 of the Clean Air Act if attainment is not reached in a timely manner; • hazardous air pollutant emissions reduction programs; • interstate air transport; • operating permit programs and enforcement of these and other Clean Air Act programs; • regional haze programs; and • new and existing source standards for greenhouse gas and other air emissions.
The facility is expected to reach commercial operation as early as June 2026; • In January 2023, Entergy Louisiana and Coastal Prairie Solar, LLC executed a 20-year PPA for approximately 175 MW from a to-be-constructed solar photovoltaic energy facility located in Iberville Parish, Louisiana.
In September 2023 the APSC approved the PPA, and the facility is expected to reach commercial operation as early as November 2025; • In January 2023, Entergy Louisiana and Coastal Prairie Solar, LLC executed a 20-year PPA for approximately 175 MW from a to-be-constructed solar photovoltaic energy facility located in Iberville Parish, Louisiana.
Coal Entergy Arkansas has committed to six two- to three-year contracts that will supply at least 85% of the total coal supply needs in 2024. These contracts are staggered in term so that not all contracts have to be renewed the same year.
Coal Entergy Arkansas has committed to seven one- to three-year contracts that will supply at least 85% of the total coal supply needs in 2025. These contracts are staggered in term so that not all contracts have to be renewed the same year.
The Distributed Generation Rule maintains the 3% net metering participation cap. The Distributed Generation Rule grandfathers a 2.5 cents per kWh distributed generation benefits adder for 25 years and expands eligibility for the 2 cents per kWh low-income benefits adder to households up to 225% of the federal poverty level and grandfathers that adder for 25 years.
The Distributed Generation Rule grandfathers a 2.5 cents per kWh distributed generation benefits adder for 25 years and expands eligibility for the 2 cents per kWh low-income benefits adder to households up to 225% of the federal poverty level and grandfathers that adder for 25 years.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeHow the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the securitization uncertain tax position included the following, among others: • We tested the effectiveness of controls related to the securitization uncertain tax position, including those over the recognition and measurement of the income tax benefit. • We evaluated the Company’s disclosures, and the balances recorded, related to the securitization uncertain tax position. • We evaluated the methods and assumptions used by management to estimate the uncertain tax position by testing the underlying data that served as the basis for the uncertain tax position. • With the assistance of our income tax specialists, we tested the technical merits of the securitization uncertain tax position and management’s key estimates and judgments made by: • Assessing the technical merits of the uncertain tax position by comparing to similar cases filed with the Internal Revenue Service. • Obtaining an opinion from the Company’s external legal counsel regarding certain federal income tax consequences related to the Act 55, as supplemented by Act 293, securitization financing and evaluating whether the analysis was consistent with our interpretation of the relevant laws and circumstances. • Considering the impact of changes or settlements in the tax environment on management’s methods and assumptions used to estimate the uncertain tax position. /s/ DELOITTE & TOUCHE LLP New Orleans, Louisiana February 23, 2024 We have served as the Company’s auditor since 2001. 367 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For the Years Ended December 31, 2023 2022 2021 (In Thousands) OPERATING REVENUES Electric $5,073,239 $6,246,933 $4,994,459 Natural gas 74,531 91,835 73,989 TOTAL 5,147,770 6,338,768 5,068,448 OPERATING EXPENSES Operation and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 1,080,485 2,002,456 1,302,291 Purchased power 654,721 1,076,715 768,546 Nuclear refueling outage expenses 63,429 59,698 49,373 Other operation and maintenance 1,097,233 1,139,605 1,034,427 Decommissioning 75,962 72,122 68,575 Taxes other than income taxes 245,191 241,908 224,079 Depreciation and amortization 726,389 695,204 656,132 Other regulatory charges (credits) - net 41,209 148,871 38,245 TOTAL 3,984,619 5,436,579 4,141,668 OPERATING INCOME 1,163,151 902,189 926,780 OTHER INCOME Allowance for equity funds used during construction 32,160 26,252 28,648 Interest and investment income (loss) 90,316 (69,144) 154,606 Interest and investment income - affiliated 303,233 185,826 127,594 Miscellaneous - net (160,972) 9,824 (125,886) TOTAL 264,737 152,758 184,962 INTEREST EXPENSE Interest expense 375,295 373,480 350,227 Allowance for borrowed funds used during construction (14,996) (11,550) (12,878) TOTAL 360,299 361,930 337,349 INCOME BEFORE INCOME TAXES 1,067,589 693,017 774,393 Income taxes (205,781) (162,853) 120,409 NET INCOME 1,273,370 855,870 653,984 Net income attributable to noncontrolling interests 2,988 1,366 — EARNINGS APPLICABLE TO MEMBER'S EQUITY $1,270,382 $854,504 $653,984 See Notes to Financial Statements. 368 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2023 2022 2021 (In Thousands) Net Income $1,273,370 $855,870 $653,984 Other comprehensive income (loss) Pension and other postretirement liabilities (net of tax expense (benefit) of ($211), $17,351, and $1,523) (572) 47,092 3,951 Other comprehensive income (loss) (572) 47,092 3,951 Comprehensive Income 1,272,798 902,962 657,935 Net income attributable to noncontrolling interests 2,988 1,366 — Comprehensive Income Applicable to Member's Equity $1,269,810 $901,596 $657,935 See Notes to Financial Statements. 369 Table of Contents (Page left blank intentionally) 370 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2023 2022 2021 (In Thousands) OPERATING ACTIVITIES Net income $1,273,370 $855,870 $653,984 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 864,225 852,521 818,389 Deferred income taxes, investment tax credits, and non-current taxes accrued (99,812) (70,379) 175,700 Changes in working capital: Receivables 55,140 (53,434) (58,466) Fuel inventory (15,959) 1,099 7,722 Accounts payable (100,321) (207,949) 358,536 Taxes accrued 30,459 (28,244) 21,631 Interest accrued (9,680) 8,284 803 Deferred fuel costs 134,383 (113,809) (43,124) Other working capital accounts (129,173) (103,571) (45,517) Changes in provisions for estimated losses (52,445) 291,824 (449) Changes in other regulatory assets 407,327 720,487 (1,050,600) Changes in other regulatory liabilities 225,645 (4,783) (16,478) Effect of securitization on regulatory asset (491,150) (1,190,338) — Changes in pension and other postretirement liabilities (117,886) (139,067) (164,263) Other 57,997 358,997 394,658 Net cash flow provided by operating activities 2,032,120 1,177,508 1,052,526 INVESTING ACTIVITIES Construction expenditures (1,624,181) (2,568,113) (3,621,775) Allowance for equity funds used during construction 32,160 26,252 28,648 Nuclear fuel purchases (162,079) (122,020) (85,419) Proceeds from sale of nuclear fuel 30,214 37,648 13,254 Payments to storm reserve escrow account (14,449) (1,293,633) — Receipts from storm reserve escrow account 64,036 1,000,228 — Purchase of preferred membership interests of affiliate (1,457,676) (3,163,572) — Redemption of preferred membership interests of affiliate 125,002 1,390,587 — Changes in securitization account — — 2,700 Proceeds from nuclear decommissioning trust fund sales 575,596 633,100 944,703 Investment in nuclear decommissioning trust funds (633,029) (667,947) (1,004,888) Changes in money pool receivable - net — 14,539 (1,113) Proceeds from sale of assets — 5,000 15,000 Insurance proceeds received for property damages 19,493 — — Litigation proceeds from settlement agreement — 5,695 — Litigation proceeds for reimbursement of spent nuclear fuel storage costs — — 8,691 Decrease (increase) in other investments 5,457 (5,475) — Net cash flow used in investing activities (3,039,456) (4,707,711) (3,700,199) FINANCING ACTIVITIES Proceeds from the issuance of long-term debt 1,410,893 2,942,771 3,769,166 Retirement of long-term debt (2,699,235) (3,167,832) (1,895,091) Proceeds received by storm trusts related to securitization 1,457,676 3,163,572 — Capital contributions from parent 1,457,676 1,000,000 125,000 Changes in money pool payable - net (69,948) 226,114 — Common equity distributions paid (660,750) (624,000) (60,000) Other 57,183 27,618 (849) Net cash flow provided by financing activities 953,495 3,568,243 1,938,226 Net increase (decrease) in cash and cash equivalents (53,841) 38,040 (709,447) Cash and cash equivalents at beginning of period 56,613 18,573 728,020 Cash and cash equivalents at end of period $2,772 $56,613 $18,573 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid (received) during the period for: Interest - net of amount capitalized $376,353 $353,697 $337,926 Income taxes ($141,143) ($82,463) ($18,453) Non-cash investing activities: Accrued construction expenditures $105,859 $156,654 $507,855 See Notes to Financial Statements. 371 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS December 31, 2023 2022 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $2,255 $50,318 Temporary cash investments 517 6,295 Total cash and cash equivalents 2,772 56,613 Accounts receivable: Customer 264,776 339,291 Allowance for doubtful accounts (6,156) (7,595) Associated companies 82,292 88,896 Other 74,685 53,241 Accrued unbilled revenues 202,173 199,077 Total accounts receivable 617,770 672,910 Deferred fuel costs 24,800 159,183 Fuel inventory 57,818 41,859 Materials and supplies - at average cost 652,180 555,860 Deferred nuclear refueling outage costs 96,047 53,833 Prepayments and other 71,613 76,646 TOTAL 1,523,000 1,616,904 OTHER PROPERTY AND INVESTMENTS Investment in affiliate preferred membership interests 4,496,245 3,163,572 Decommissioning trust funds 2,107,384 1,779,090 Non-utility property - at cost (less accumulated depreciation) 404,043 350,723 Storm reserve escrow account 243,819 293,406 Other 9,367 19,679 TOTAL 7,260,858 5,606,470 UTILITY PLANT Electric 27,800,467 27,498,136 Natural gas 315,658 301,719 Construction work in progress 592,803 736,969 Nuclear fuel 333,472 212,941 TOTAL UTILITY PLANT 29,042,400 28,749,765 Less - accumulated depreciation and amortization 10,570,707 10,087,942 UTILITY PLANT - NET 18,471,693 18,661,823 DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Other regulatory assets 1,648,852 2,056,179 Deferred fuel costs 168,122 168,122 Other 36,945 35,057 TOTAL 1,853,919 2,259,358 TOTAL ASSETS $29,109,470 $28,144,555 See Notes to Financial Statements. 372 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY December 31, 2023 2022 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $1,400,000 $1,010,000 Accounts payable: Associated companies 283,016 356,688 Other 467,414 589,355 Customer deposits 167,905 161,666 Taxes accrued 66,463 36,004 Interest accrued 91,656 101,336 Other 87,468 72,525 TOTAL 2,563,922 2,327,574 NON-CURRENT LIABILITIES Accumulated deferred income taxes and taxes accrued 2,391,442 2,374,878 Accumulated deferred investment tax credits 93,242 97,868 Regulatory liability for income taxes - net 193,754 337,836 Other regulatory liabilities 1,407,689 1,037,962 Decommissioning 1,836,240 1,736,801 Accumulated provisions 263,869 316,314 Pension and other postretirement liabilities 271,928 389,631 Long-term debt 8,020,689 9,688,922 Other 493,176 343,321 TOTAL 14,972,029 16,323,533 Commitments and Contingencies EQUITY Member ’ s equity 11,473,614 9,406,343 Accumulated other comprehensive income 54,798 55,370 Noncontrolling interests 45,107 31,735 TOTAL 11,573,519 9,493,448 TOTAL LIABILITIES AND EQUITY $29,109,470 $28,144,555 See Notes to Financial Statements. 373 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Years Ended December 31, 2023, 2022, and 2021 Noncontrolling Interests Member ’ s Equity Accumulated Other Comprehensive Income Total (In Thousands) Balance at December 31, 2020 $— $7,453,361 $4,327 $7,457,688 Net income — 653,984 — 653,984 Other comprehensive income — — 3,951 3,951 Capital contribution from parent — 125,000 — 125,000 Common equity distributions — (60,000) — (60,000) Other — (51) — (51) Balance at December 31, 2021 $— $8,172,294 $8,278 $8,180,572 Net income 1,366 854,504 — 855,870 Other comprehensive income — — 47,092 47,092 Beneficial interest in storm trust 31,636 — — 31,636 Non-cash contribution from parent — 3,597 — 3,597 Capital contribution from parent — 1,000,000 — 1,000,000 Common equity distributions — (624,000) — (624,000) Distribution to LURC (1,267) — — (1,267) Other — (52) — (52) Balance at December 31, 2022 $31,735 $9,406,343 $55,370 $9,493,448 Net income 2,988 1,270,382 — 1,273,370 Other comprehensive loss — — (572) (572) Beneficial interest in storm trust 14,577 — — 14,577 Capital contribution from parent — 1,457,676 — 1,457,676 Common equity distributions — (660,750) — (660,750) Distributions to LURC (4,193) — — (4,193) Other — (37) — (37) Balance at December 31, 2023 $45,107 $11,473,614 $54,798 $11,573,519 See Notes to Financial Statements. 374 Table of Contents ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Results of Operations 2023 Compared to 2022 Earnings Applicable to Member’s Equity Earnings decreased $5.4 million primarily due to higher depreciation and amortization expenses, lower volume/weather, higher interest expense, lower other income, higher other operation and maintenance expenses, and higher taxes other than income taxes.
Biggest changeWe evaluated external information and compared to management’s recorded regulatory asset and liability balances for completeness. • For regulatory matters in process, we inspected the Company’s filings with the LPSC and the FERC and orders issued, and considered the filings with the LPSC and the FERC by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions . • We obtained an analysis from management and support from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order, to assess management’s assertion that amounts are probable of recovery or refund or a future reduction in rates. • We obtained representation from management regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities to assess management’s assertion that amounts are probable of recovery, refund, or a future reduction in rates. /s/ DELOITTE & TOUCHE LLP New Orleans, Louisiana February 18, 2025 We have served as the Company’s auditor since 2001. 366 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS For the Years Ended December 31, 2024 2023 2022 (In Thousands) OPERATING REVENUES Electric $5,068,158 $5,073,239 $6,246,933 Natural gas 75,860 74,531 91,835 TOTAL 5,144,018 5,147,770 6,338,768 OPERATING EXPENSES Operation and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 1,026,343 1,080,485 2,002,456 Purchased power 670,874 654,721 1,076,715 Nuclear refueling outage expenses 76,020 63,429 59,698 Other operation and maintenance 1,097,283 1,097,233 1,139,605 Decommissioning 80,663 75,962 72,122 Taxes other than income taxes 248,472 245,191 241,908 Depreciation and amortization 770,904 726,389 695,204 Other regulatory charges (credits) - net 41,525 41,209 148,871 TOTAL 4,012,084 3,984,619 5,436,579 OPERATING INCOME 1,131,934 1,163,151 902,189 OTHER INCOME Allowance for equity funds used during construction 36,782 32,160 26,252 Interest and investment income (loss) 146,494 90,316 (69,144) Interest and investment income - affiliated 315,433 303,233 185,826 Miscellaneous - net (123,280) (160,972) 9,824 TOTAL 375,429 264,737 152,758 INTEREST EXPENSE Interest expense 403,473 375,295 373,480 Allowance for borrowed funds used during construction (12,290) (14,996) (11,550) TOTAL 391,183 360,299 361,930 INCOME BEFORE INCOME TAXES 1,116,180 1,067,589 693,017 Income taxes 225,409 (205,781) (162,853) NET INCOME 890,771 1,273,370 855,870 Net income attributable to noncontrolling interests 3,126 2,988 1,366 EARNINGS APPLICABLE TO MEMBER'S EQUITY $887,645 $1,270,382 $854,504 See Notes to Financial Statements. 367 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, 2024 2023 2022 (In Thousands) Net Income $890,771 $1,273,370 $855,870 Other comprehensive income (loss) Pension and other postretirement plan changes (net of tax expense (benefit) of ($421), ($211), and $17,351) (1,140) (572) 47,092 Other comprehensive income (loss) (1,140) (572) 47,092 Comprehensive Income 889,631 1,272,798 902,962 Net income attributable to noncontrolling interests 3,126 2,988 1,366 Comprehensive Income Applicable to Member's Equity $886,505 $1,269,810 $901,596 See Notes to Financial Statements. 368 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2024 2023 2022 (In Thousands) OPERATING ACTIVITIES Net income $890,771 $1,273,370 $855,870 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 937,246 864,225 852,521 Deferred income taxes, investment tax credits, and non-current taxes accrued 259,474 (99,812) (70,379) Changes in working capital: Receivables 4,248 55,140 (53,434) Fuel inventory 7,601 (15,959) 1,099 Accounts payable (6,123) (100,321) (207,949) Taxes accrued (37,448) 30,459 (28,244) Interest accrued 28,530 (9,680) 8,284 Deferred fuel costs 29,494 134,383 (113,809) Other working capital accounts 84,692 (129,173) (103,571) Changes in provisions for estimated losses 15,754 (52,445) 291,824 Changes in other regulatory assets 1,937 407,327 720,487 Changes in other regulatory liabilities 452,731 225,645 (4,783) Effect of securitization on regulatory asset — (491,150) (1,190,338) Changes in pension and other postretirement funded status (117,627) (117,886) (139,067) Other (303,717) 57,997 358,997 Net cash flow provided by operating activities 2,247,563 2,032,120 1,177,508 INVESTING ACTIVITIES Construction expenditures (1,633,669) (1,624,181) (2,568,113) Allowance for equity funds used during construction 36,782 32,160 26,252 Nuclear fuel purchases (125,315) (162,079) (122,020) Proceeds from sale of nuclear fuel 63,297 30,214 37,648 Payments to storm reserve escrow account (12,899) (14,449) (1,293,633) Receipts from storm reserve escrow account — 64,036 1,000,228 Purchase of preferred membership interests of affiliate — (1,457,676) (3,163,572) Redemption of preferred membership interests of affiliate 239,249 125,002 1,390,587 Proceeds from nuclear decommissioning trust fund sales 1,185,491 575,596 633,100 Investment in nuclear decommissioning trust funds (1,242,466) (633,029) (667,947) Changes in money pool receivable - net (32,668) — 14,539 Proceeds from sale of assets 2,109 — 5,000 Insurance proceeds received for property damages 7,907 19,493 — Litigation proceeds from settlement agreement — — 5,695 Decrease (increase) in other investments 35 5,457 (5,475) Net cash flow used in investing activities (1,512,147) (3,039,456) (4,707,711) FINANCING ACTIVITIES Proceeds from the issuance of long-term debt 2,743,965 1,410,893 2,942,771 Retirement of long-term debt (2,305,336) (2,699,235) (3,167,832) Proceeds received by storm trusts related to securitization — 1,457,676 3,163,572 Capital contributions from parent — 1,457,676 1,000,000 Changes in money pool payable - net (156,166) (69,948) 226,114 Common equity distributions paid (859,100) (660,750) (624,000) Other 165,551 57,183 27,618 Net cash flow provided by (used in) financing activities (411,086) 953,495 3,568,243 Net increase (decrease) in cash and cash equivalents 324,330 (53,841) 38,040 Cash and cash equivalents at beginning of period 2,772 56,613 18,573 Cash and cash equivalents at end of period $327,102 $2,772 $56,613 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid (received) during the period for: Interest - net of amount capitalized $366,384 $376,353 $353,697 Income taxes $16,882 ($141,143) ($82,463) Non-cash investing activities: Accrued construction expenditures $124,077 $105,859 $156,654 See Notes to Financial Statements. 369 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS December 31, 2024 2023 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $327 $2,255 Temporary cash investments 326,775 517 Total cash and cash equivalents 327,102 2,772 Accounts receivable: Customer 294,089 264,776 Allowance for doubtful accounts (3,036) (6,156) Associated companies 103,055 82,292 Other 39,056 74,685 Accrued unbilled revenues 213,026 202,173 Total accounts receivable 646,190 617,770 Deferred fuel costs — 24,800 Fuel inventory - at average cost 49,515 57,818 Materials and supplies 782,459 652,180 Deferred nuclear refueling outage costs 31,121 96,047 Current assets held for sale 2,474 — Prepayments and other 84,236 71,613 TOTAL 1,923,097 1,523,000 OTHER PROPERTY AND INVESTMENTS Investment in affiliate preferred membership interests 4,256,997 4,496,245 Decommissioning trust funds 2,429,088 2,107,384 Non-utility property - at cost (less accumulated depreciation) 410,611 404,043 Storm reserve escrow account 256,718 243,819 Other 9,749 9,367 TOTAL 7,363,163 7,260,858 UTILITY PLANT Electric 28,736,547 27,800,467 Natural gas 33,775 315,658 Construction work in progress 761,090 592,803 Nuclear fuel 288,084 333,472 TOTAL UTILITY PLANT 29,819,496 29,042,400 Less - accumulated depreciation and amortization 10,794,817 10,570,707 UTILITY PLANT - NET 19,024,679 18,471,693 DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Other regulatory assets 1,637,967 1,648,852 Deferred fuel costs 168,122 168,122 Non-current assets held for sale 173,669 — Other 57,853 36,945 TOTAL 2,037,611 1,853,919 TOTAL ASSETS $30,348,550 $29,109,470 See Notes to Financial Statements. 370 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND EQUITY December 31, 2024 2023 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $300,000 $1,400,000 Accounts payable: Associated companies 108,688 283,016 Other 533,087 467,414 Customer deposits 169,544 167,905 Taxes accrued 29,002 66,463 Interest accrued 120,186 91,656 Deferred fuel costs 5,421 — Customer advances 151,662 — Other 96,426 87,468 TOTAL 1,514,016 2,563,922 NON-CURRENT LIABILITIES Accumulated deferred income taxes and taxes accrued 2,477,954 2,391,442 Accumulated deferred investment tax credits 88,679 93,242 Regulatory liability for income taxes - net 355,432 193,754 Other regulatory liabilities 1,692,547 1,407,689 Decommissioning 1,842,855 1,836,240 Accumulated provisions 279,623 263,869 Pension and other postretirement liabilities 160,577 271,928 Long-term debt 9,566,453 8,020,689 Customer advances for construction 291,842 115,102 Other 479,178 378,074 TOTAL 17,235,140 14,972,029 Commitments and Contingencies EQUITY Member ’ s equity 11,503,030 11,473,614 Accumulated other comprehensive income 53,658 54,798 Noncontrolling interests 42,706 45,107 TOTAL 11,599,394 11,573,519 TOTAL LIABILITIES AND EQUITY $30,348,550 $29,109,470 See Notes to Financial Statements. 371 Table of Contents ENTERGY LOUISIANA, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Years Ended December 31, 2024, 2023, and 2022 Noncontrolling Interests Member ’ s Equity Accumulated Other Comprehensive Income Total (In Thousands) Balance at December 31, 2021 $— $8,172,294 $8,278 $8,180,572 Net income 1,366 854,504 — 855,870 Other comprehensive income — — 47,092 47,092 Beneficial interest in storm trust 31,636 — — 31,636 Non-cash contribution from parent — 3,597 — 3,597 Capital contribution from parent — 1,000,000 — 1,000,000 Common equity distributions — (624,000) — (624,000) Distribution to LURC (1,267) — — (1,267) Other — (52) — (52) Balance at December 31, 2022 $31,735 $9,406,343 $55,370 $9,493,448 Net income 2,988 1,270,382 — 1,273,370 Other comprehensive loss — — (572) (572) Beneficial interest in storm trust 14,577 — — 14,577 Capital contribution from parent — 1,457,676 — 1,457,676 Common equity distributions — (660,750) — (660,750) Distribution to LURC (4,193) — — (4,193) Other — (37) — (37) Balance at December 31, 2023 $45,107 $11,473,614 $54,798 $11,573,519 Net income 3,126 887,645 — 890,771 Other comprehensive loss — — (1,140) (1,140) Non-cash contribution from parent — 976 — 976 Common equity distributions — (859,100) — (859,100) Distributions to LURC (5,527) — — (5,527) Other — (105) — (105) Balance at December 31, 2024 $42,706 $11,503,030 $53,658 $11,599,394 See Notes to Financial Statements. 372 Table of Contents ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Results of Operations 2024 Compared to 2023 Net Income Net income increased $63.4 million primarily due to higher retail electric price, partially offset by higher taxes other than income taxes and higher interest expense.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
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.
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.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
(b) Lease obligations are discussed in Note 10 to the financial statements.
(b) Lease obligations are discussed in Note 10 to the financial statements.
See “ Critical Accounting Estimates - Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
See “ Critical Accounting Estimates - Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Nuclear Decommissioning Costs See “ Nuclear Decommissioning Costs ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of the estimates inherent in accounting for nuclear decommissioning costs.
Nuclear Decommissioning Costs See “ Nuclear Decommissioning Costs ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of the estimates inherent in accounting for nuclear decommissioning costs.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.
Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs, and refunds to customers.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs, and refunds to customers.
See “ Critical Accounting Estimates – Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
See “ Critical Accounting Estimates - Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
(b) Lease obligations are discussed in Note 10 to the financial statements.
(b) Lease obligations are discussed in Note 10 to the financial statements.
See “ Critical Accounting Estimates – Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
See “ Critical Accounting Estimates - Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Federal Regulation See the “ Rate, Cost-recovery, and Other Regulation – Federal Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 2 to the financial statements for a discussion of federal regulation.
Federal Regulation See the “ Rate, Cost-recovery, and Other Regulation – Federal Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 2 to the financial statements for a discussion of federal regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
Cost Sensitivity The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
Cost Sensitivity The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.
Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs and refunds to customers.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs and refunds to customers.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
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.
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.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
To the extent that operating cash flows are in excess of planned investments, cash may be used to reduce outstanding debt or may be paid as a distribution, to the extent funds are legally available to do so, or both, in appropriate amounts to maintain the capital structure.
(b) Lease obligations are discussed in Note 10 to the financial statements.
(b) Lease obligations are discussed in Note 10 to the financial statements.
See “ Critical Accounting Estimates - Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
See “ Critical Accounting Estimates – Qualified Pension and Other Postretirement Benefits ” below and Note 11 to the financial statements for a discussion of qualified pension and other postretirement benefits funding.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
Cost Sensitivity The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
Cost Sensitivity The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
The Company assesses whether the regulatory assets and regulatory liabilities continue to meet the criteria for probable future recovery or settlement at each balance sheet date and when regulatory events occur. This assessment includes consideration of recent rate orders, historical regulatory treatment for similar costs, and factors such as changes in applicable regulatory and political environments.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
We identified the impact of rate regulation as a critical audit matter due to the judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs and refunds to customers.
Management judgments include assessing the likelihood of recovery in future rates of incurred costs and refunds to customers.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
Income Tax Legislation and Regulation See the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of income tax legislation and regulation.
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.
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.
The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures.
The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Circumstances such as weather patterns, fuel and purchased power price fluctuations, and unanticipated expenses, including unscheduled plant outages and storms, could affect the timing and level of internally generated funds in the future.
Federal Regulation See the “ Rate, Cost-recovery, and Other Regulation – Federal Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 2 to the financial statements for a discussion of federal regulation.
Federal Regulation See the “ Rate, Cost-recovery, and Other Regulation – Federal Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 2 to the financial statements for a discussion of federal regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Utility Regulatory Accounting See “ Utility Regulatory Accounting ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
Taxation and Uncertain Tax Positions See “ Taxation and Uncertain Tax Positions ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
See “ Qualified Pension and Other Postretirement Benefits ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
Cost Sensitivity The following chart reflects the sensitivity of qualified pension and qualified projected benefit obligation cost to changes in certain actuarial assumptions (dollars in thousands).
Cost Sensitivity The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Other Contingencies See “ Other Contingencies ” in the “ Critical Accounting Estimates ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of the estimates associated with environmental, litigation, and other risks.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

12 edited+5 added−18 removed21 unchanged
Biggest changeFor information regarding the Unit Power Sales Agreement, the sale and leaseback transactions and certain other agreements relating to certain Entergy System companies’ support of System Energy, see Notes 5 and 8 to the financial statements and the “ Utility - System Energy and Related Agreements ” section of Part I, Item 1. 307 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy (Entergy Corporation) Entergy’s non-utility operations are subject to substantial governmental regulation and may be adversely affected by legislative, regulatory, or market design changes, as well as liability under, or any future inability to comply with, existing or future regulations or requirements.
Biggest change(Entergy Corporation) Entergy’s non-utility operations are subject to substantial governmental regulation and may be adversely affected by legislative, regulatory, or market design changes, as well as liability under, or any future inability to comply with, existing or future regulations or requirements. Entergy’s non-utility operations, including wholesale sales of electricity, are subject to regulation under federal, state, and local laws.
The global economic cost to insurers resulting from cyber attacks, natural disasters, and other catastrophic events, in addition to an increased focus on climate issues, could have disruptive effects on insurance markets.
The global economic cost to insurers resulting from cyber attacks, natural disasters, wildfires, and other catastrophic events, in addition to an increased focus on climate issues, has had and may continue to have disruptive effects on insurance markets.
Entergy’s non-utility operations are subject to regulation under federal, state, and local laws. Compliance with the requirements under these various regulatory regimes may cause Entergy’s non-utility operations to incur significant additional costs, and failure to comply with such requirements could result in the shutdown of the non-complying facility, the imposition of liens, fines, and/or civil or criminal liability.
Compliance with the requirements under these various regulatory regimes may cause Entergy’s non-utility operations to incur significant additional costs, and failure to comply with such requirements could result in the imposition of liens, fines, and/or civil or criminal liability.
Significant increases in commodity prices, other materials and supplies, and operation and maintenance expenses may adversely affect Entergy's results of operations, financial condition, and liquidity. Entergy and its subsidiaries have observed and expect continued inflationary pressures related to commodity prices, other materials and supplies, and operation and maintenance expenses, including in the areas of labor, health care, and pension costs.
Entergy and its subsidiaries have observed and expect continued inflationary pressures related to commodity prices, other materials and supplies, and operation and maintenance expenses, including in the areas of labor, health care, and pension costs.
The useful economic life of Grand Gulf is finite and is limited by the terms of its operating license, which currently expires in November 2044. System Energy’s financial condition depends both on the receipt of payments from the Utility operating companies (other than Entergy Texas) under the Unit Power Sales Agreement and on the continued commercial operation of Grand Gulf.
System Energy’s financial condition depends both on the receipt of payments from the Utility operating companies (other than Entergy Texas) under the Unit Power Sales Agreement and on the continued commercial operation of Grand Gulf.
This could have an adverse effect on the rates those entities charge for power from its facilities. Entergy’s non-utility operations are also affected by legislative and regulatory changes, as well as by changes to market design, market rules, tariffs, cost allocations, and bidding rules imposed by the existing Independent System Operator.
Entergy’s non-utility operations are also affected by legislative and regulatory changes, as well as by changes to market design, market rules, tariffs, cost allocations, and bidding rules imposed by the existing Independent System Operator.
Increases in commodity prices, other materials and supplies, and operation and maintenance expenses, including increasing labor costs and costs and funding requirements associated with Entergy's defined benefit retirement plans, health care plans, and other employee benefits, could increase their financing needs and otherwise adversely affect their results of operations, financial condition, and liquidity.
Increases in commodity prices, the prices of other materials and supplies, and operation and maintenance expenses, including increasing labor costs and costs and funding requirements associated with Entergy's defined benefit retirement plans, health care plans, and other employee benefits, could increase their financing needs and otherwise adversely affect their results of operations, financial condition, and liquidity. 312 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy (Entergy New Orleans) The effect of higher purchased gas cost charges to customers taking gas service may adversely affect Entergy New Orleans’s results of operations and liquidity.
System Energy’s operating revenues are derived from the allocation of the capacity, energy, and related costs associated with its 90% ownership/leasehold interest in Grand Gulf. Charges under the Unit Power Sales Agreement are paid by the Utility operating companies (other than Entergy Texas) as consideration for their respective entitlements to receive capacity and energy.
Charges under the Unit Power Sales Agreement are paid by the Utility operating companies (other than Entergy Texas) as consideration for their respective entitlements to receive capacity and energy. The useful economic life of Grand Gulf is finite and is limited by the terms of its operating license, which currently expires in November 2044.
If competitive restructuring of the electric power markets is reversed, modified, discontinued, or delayed, Entergy’s non-utility operations’ results of operations, financial condition, and liquidity could be materially affected. 308 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy As a holding company, Entergy Corporation depends on cash distributions from its subsidiaries to meet its debt service and other financial obligations and to pay dividends on its common stock, and has provided, and may continue to provide, capital contributions or debt financing to its subsidiaries, which would reduce the funds available to meet its other financial obligations.
As a holding company, Entergy Corporation depends on cash distributions from its subsidiaries to meet its debt service and other financial obligations and to pay dividends on its common stock, and has provided, and may continue to provide, capital contributions or debt financing to its subsidiaries, which would reduce the funds available to meet its other financial obligations.
See Note 2 to the financial statements for further discussion of the proceedings. The Utility operating companies (other than Entergy Texas) have agreed to implement certain protocols for providing retail regulators with information regarding rates billed under the Unit Power Sales Agreement.
System Energy agreed to implement certain protocols for providing retail regulators with information regarding rates billed under the Unit Power Sales Agreement.
The control and management of these risks depend upon adequate development and training of personnel and on operational procedures, preventative maintenance plans, and specific programs supported by quality control systems, which may not prevent the occurrence and impact of these risks.
The control and management of these risks depend upon adequate development and training of personnel and on operational procedures, preventative maintenance plans, and specific programs supported by quality control systems, which may not prevent the occurrence and impact of these risks. 314 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy The hazards described above, along with other safety hazards associated with our operations, can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of, or damage to, the environment and suspension of operations.
Certain contractual arrangements relating to 306 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy System Energy, the affiliated companies, and these revenues are the subject of ongoing litigation and regulatory proceedings.
Certain contractual arrangements relating to System Energy, the affiliated companies, and these revenues are the subject of ongoing litigation and may be subject to future such litigation and regulatory proceedings. System Energy’s operating revenues are derived from the allocation of the capacity, energy, and related costs associated with its 90% ownership/leasehold interest in Grand Gulf.
Removed
(Entergy New Orleans) The effect of higher purchased gas cost charges to customers taking gas service may adversely affect Entergy New Orleans’s results of operations and liquidity.
Added
Significant increases in commodity prices, the prices of other materials and supplies, and operation and maintenance expenses may adversely affect Entergy's results of operations, financial condition, and liquidity.
Removed
The aggregate amount of refunds claimed in these proceedings, after reduction for settlements reached with the MPSC and the APSC (subject in the latter case to approval by the FERC), exceeds the current net book value of System Energy.
Added
The Unit Power Sales Agreement has in the past been the subject of significant litigation, including claims for refunds and rate adjustments, and is currently the subject of a litigation proceeding at the FERC with respect to System Energy’s inclusion of pre-paid and accrued pension costs in rates.
Removed
In the event of an adverse decision in one or more of these proceedings requiring the payment of substantial additional refunds, System Energy would be required to seek financing to pay such refunds which financing may not be available on terms acceptable to System Energy when required.
Added
Entergy cannot predict with certainty the outcome of this proceeding or any future proceedings that may arise with respect to the Unit Power Sales Agreement. See Note 2 to the financial statements for further discussion of the litigation proceedings that have been settled at the FERC.
Removed
The Unit Power Sales Agreement is currently the subject of several litigation proceedings at the FERC (or on appeal from the FERC to the United States Court of Appeals for the Fifth Circuit), including challenges with respect to System Energy’s authorized return on equity and capital structure, renewal of its sale-leaseback arrangement, treatment of uncertain tax positions, a broader investigation of rates under the Unit Power Sales Agreement, and two prudence complaints, one challenging the extended power uprate completed at Grand Gulf in 2012 and the operation and management of Grand Gulf, particularly in the 2016-2020 time period, and the second challenging the operation and management of Grand Gulf in the 2021-2022 time period.
Added
For information regarding the Unit Power Sales Agreement and certain other agreements relating to certain Entergy System companies’ support of System Energy, see Note 8 to the financial statements and the “ Utility - System Energy and Related Agreements ” section of Part I, Item 1.
Removed
The claims in these proceedings include claims for refunds and claims for rate adjustments. The aggregate amount of refunds claimed in these proceedings, after reduction for settlements reached with the MPSC and the APSC (subject in the latter case to approval by the FERC), exceeds the current net book value of System Energy.
Added
If Entergy’s non-utility operations 313 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy were deemed to violate market behavior rules, the FERC can impose potential penalties of up to $1.544 million per day for each violation by any such entity of market-based rate rules and regulations.
Removed
Entergy Corporation is not obligated to provide funding to System Energy to enable it to pay any such refunds. In the event that an adverse decision in one or more of these proceedings required the payment of substantial additional refunds, System Energy would need to source additional financing to pay such refunds.
Removed
Such financing may not be available on terms acceptable to System Energy when required. System Energy and its debt securities have been subject to downgrade by rating agencies in the past, most recently in May 2023.
Removed
Any further downgrade by one or more rating agencies could adversely affect the market prices of System Energy’s debt securities and otherwise adversely affect System Energy’s financial condition.
Removed
In addition, an order requiring System Energy to pay substantial additional refunds could result in a default and, in certain cases, acceleration under one or more of System Energy’s existing bond indentures, credit agreements, or other financing arrangements.
Removed
Certain events constituting events of default under System Energy’s financing agreements may also result in defaults under, or acceleration with respect to, financing arrangements involving certain credit agreement and guarantee obligations of Entergy Corporation. These proceedings are pending before their respective adjudicators and no final decisions have been reached.
Removed
Thus, Entergy cannot predict with certainty the outcome of any of these proceedings, or the magnitude of any refunds or rate adjustments, and an adverse outcome in any of them could have a material adverse effect on Entergy’s or System Energy’s results of operations, financial condition, or liquidity.
Removed
Public utilities under the Federal Power Act are required to obtain FERC acceptance of their rate schedules for wholesale sales of electricity. Entergy’s non-utility operations include legal entities that meet the definition of a “public utility” under the Federal Power Act by virtue of making wholesale sales of electric energy and/or owning wholesale electric transmission facilities.
Removed
The FERC has granted those entities the authority to sell electricity at market-based rates. The FERC’s orders that grant those entities market-based rate authority reserve the right to revoke or revise that authority if the FERC subsequently determines that those entities can exercise market power in transmission or generation, create barriers to entry, or engage in abusive affiliate transactions.
Removed
In addition, market-based sales are subject to certain market behavior rules, and if one of those entities were deemed to have violated one of those rules, they would be subject to potential disgorgement of profits associated with the violation and/or suspension or revocation of their market-based rate authority and potential penalties of up to $1.496 million per day per violation.
Removed
If one of those entities were to lose their market-based rate authority, it would be required to obtain the FERC’s acceptance of a cost-of-service rate schedule and could become subject to the accounting, record-keeping, and reporting requirements that are imposed on utilities with cost-based rate schedules.
Removed
In addition, in some of these markets, interested parties have proposed material market design changes, including the elimination of a single clearing price mechanism, have raised claims that the competitive marketplace is not working, and have made proposals to re-regulate the markets, impose a generation tax, or require divestitures by generating companies to reduce their market share.
Removed
Other proposals to re-regulate may be made and legislative or other attention to the electric power market restructuring process may delay or reverse the deregulation process, which could require material changes to business planning models.
Removed
The hazards described above, along with other safety hazards associated with our operations, can cause significant personal injury or loss of life, severe damage to and destruction of property, plant and equipment, contamination of, or damage to, the environment and suspension of operations.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings Details of the registrant’s material environmental regulation and proceedings and other regulatory proceedings and litigation that are pending or those terminated in the fourth quarter of 2023 are discussed in Part I, Item 1. - Entergy’s Business under the sections titled “ Retail Rate Regulation ,” “ Environmental Regulation ,” and “ Litigation .”
Biggest changeItem 3. Legal Proceedings Details of the registrant’s material environmental regulation and proceedings and other regulatory proceedings and litigation that are pending or those terminated in the fourth quarter of 2024 are discussed in Part I, Item 1. - Entergy’s Business under the sections titled “ Retail Rate Regulation ,” “ Environmental Regulation ,” and “ Litigation .”

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeCollins 60 Senior Vice President and Chief Human Resources Officer of Entergy Corporation 2020-Present Chief Human Resources Officer, Arcosa, Inc. 2018-2020 Vice President, Human Resources, Trinity, Inc. 2014-2018 Kimberly Cook-Nelson (a) 51 Executive Vice President and Chief Nuclear Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy 2022-Present Director of System Energy 2022-Present Chief Operating Officer, Nuclear Operations of Entergy Services 2021-2022 Vice President, System Planning of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2019-2021 Vice President, Operations Support of Entergy Services 2016-2019 Anastasia Minor 54 Chief Transformation Officer of Entergy Services 2023-Present Senior Vice President, Strategy and Financial Planning of Entergy Services 2022-2023 Vice President, Financial Business Partners of Entergy Services 2017-2022 Peter S.
Biggest changeCollins (a) 61 Senior Vice President and Chief Human Resources Officer of Entergy Corporation 2020-Present Chief Human Resources Officer, Arcosa, Inc. 2018-2020 Kimberly Cook-Nelson (a) 52 Executive Vice President and Chief Nuclear Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy 2022-Present Director of System Energy 2022-Present Chief Operating Officer, Nuclear Operations of Entergy Services 2021-2022 Vice President, System Planning of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2019-2021 John O.
Jackson (a) 57 Senior Vice President and Chief Accounting Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2022-Present Vice President, Internal Audit and General Auditor of Entergy Services 2020-2022 Director, Real Estate and Security of Entergy Services 2014-2020 (a) In addition, this officer is an executive officer and/or director of various other wholly owned subsidiaries of Entergy Corporation and its operating companies.
Jackson (a) 58 Senior Vice President and Chief Accounting Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2022-Present Vice President, Internal Audit and General Auditor of Entergy Services 2020-2022 Director, Real Estate and Security of Entergy Services 2014-2020 460 Table of Contents (a) In addition, this officer is an executive officer and/or director of various other wholly owned subsidiaries of Entergy Corporation and its operating companies.
Each officer of Entergy Corporation is elected yearly by the Board of Directors. Each officer’s age and title are provided as of December 31, 2023. 475 Table of Contents PART II
Each officer of Entergy Corporation is elected yearly by the Board of Directors. Each officer’s age and title are provided as of December 31, 2024. 461 Table of Contents PART II
Marsh (a) 52 Chief Executive Officer of Entergy Corporation 2022-Present Chairman of the Board of Entergy Corporation 2023-Present Executive Vice President and Chief Financial Officer of Entergy Corporation 2013-2022 Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2013-2022 Executive Vice President and Chief Financial Officer of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2014-2022 Marcus V.
Marsh (a) 53 Chief Executive Officer of Entergy Corporation 2022-Present Chair of the Board of Entergy Corporation 2023-Present Executive Vice President and Chief Financial Officer of Entergy Corporation 2013-2022 Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2013-2022 Executive Vice President and Chief Financial Officer of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2014-2022 Kimberly A.
(a) 58 Executive Vice President and Chief Operating Officer of Entergy Corporation 2022-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2022-Present Senior Vice President, Operations and Development of Entergy Corporation 2022 Senior Vice President, Sustainable Planning, Development and Operations of Entergy Corporation 2021-2022 Senior Vice President, Transformation of Entergy Corporation 2018-2021 474 Table of Contents Name Age Position Period Reginald T.
(a) 59 Executive Vice President and Chief Operating Officer of Entergy Corporation 2022-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2022-Present Senior Vice President, Operations and Development of Entergy Corporation 2022 Senior Vice President, Sustainable Planning, Development and Operations of Entergy Corporation 2021-2022 Senior Vice President, Transformation of Entergy Corporation 2018-2021 Reginald T.
Fontan (a) 50 Executive Vice President and Chief Financial Officer of Entergy Corporation 2022-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy 2022-Present Executive Vice President and Chief Financial Officer of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2022-Present Senior Vice President and Chief Accounting Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2019-2022 Vice President, System Planning of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2017-2019 473 Table of Contents Name Age Position Period Roderick K.
Fontan (a) 51 Executive Vice President and Chief Financial Officer of Entergy Corporation 2022-Present President and Chair of the Board of System Energy 2024-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy 2022-Present Executive Vice President and Chief Financial Officer of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2022-Present Senior Vice President and Chief Accounting Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2019-2022 Marcus V.
West (a) 55 Group President Utility Operations of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2017-Present President, Chief Executive Officer, and Director of System Energy 2017-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2017-Present Jason Chapman (a) 53 Senior Vice President, Chief Technology and Business Services Officer of Entergy Corporation 2023-Present Acting Senior Vice President, Corporate Business Services of Entergy Services 2023 Vice President, Enterprise Shared Services of Entergy Services 2019-2023 Vice President, Global Business Services, Xylem, Inc. 2016-2019 Kathryn A.
Brown (a) 63 Executive Vice President and General Counsel of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2013-Present 459 Table of Contents Name Age Position Period Jason Chapman (a) 54 Senior Vice President, Chief Technology and Business Services Officer of Entergy Corporation 2023-Present Acting Senior Vice President, Corporate Business Services of Entergy Services 2023 Vice President, Enterprise Shared Services of Entergy Services 2019-2023 Kathryn A.
Removed
Brown (a) 62 Executive Vice President and General Counsel of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy 2013-Present Kimberly A.
Added
Hudson, III 54 Chief External Affairs Officer, Entergy Corporation 2024-Present Senior Vice President, Federal Policy, Regulatory and Government Affairs, Entergy Services LLC 2022-2024 President, Entergy Charitable Foundation 2022-Present President and Chief Executive Officer, Nicor Gas 2020-2022 Executive Vice President, External Affairs and Customer Operations, Southern Company Gas 2018-2020 Anastasia Minor 55 Chief Transformation Officer of Entergy Services 2023-Present Senior Vice President, Strategy and Financial Planning of Entergy Services 2022-2023 Vice President, Financial Business Partners of Entergy Services 2017-2022 Peter S.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change(1) See Note 12 to the financial statements for additional discussion of the stock-based compensation plans.
Biggest change(1) All share and per share amounts reflect the two-for-one forward stock split effective December 12, 2024. See Note 7 to the financial statements for discussion of the stock split. See Note 12 to the financial statements for additional discussion of the stock-based compensation plans.
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) 10/01/2023 - 10/31/2023 — $— — $350,052,918 11/01/2023 - 11/30/2023 — $— — $350,052,918 12/01/2023 - 12/31/2023 — $— — $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.
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) 10/01/2024 - 10/31/2024 — $— — $350,052,918 11/01/2024 - 11/30/2024 — $— — $350,052,918 12/01/2024 - 12/31/2024 — $— — $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.
Item 5. Market for Registrants’ Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Entergy Corporation The shares of Entergy Corporation’s common stock are listed on the New York Stock and Chicago Stock Exchanges under the ticker symbol ETR. As of January 31, 2024, there were 19,887 stockholders of record of Entergy Corporation.
Item 5. Market for Registrants’ Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Entergy Corporation The shares of Entergy Corporation’s common stock are listed on the New York Stock and Chicago Stock Exchanges under the ticker symbol ETR. As of January 31, 2025, there were 18,974 stockholders of record of Entergy Corporation.
In addition, in the first quarter 2023, Entergy withheld 71,722 shares of its common stock at $108.71 per share, 27,533 shares of its common stock at $107.69 per share, 12,265 shares of its common stock at $107.59 per share, 551 shares of its common stock at $103.72 per share, 232 shares of its common stock at $106.07 per share, and 100 shares of its common stock at $105.79 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.
In addition, in the first quarter 2024, Entergy withheld 203,920 shares of its common stock at $49.66 per share, 105,036 shares of its common stock at $49.43 per share, 3,462 shares of its common stock at $51.97 per share, 632 shares of its common stock at $51.32 per share, 464 shares of its common stock at $51.39 per share, 82 shares of its common stock at $50.08 per share, and 12 shares of its common stock at $52.34 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.

Other ETR 10-K year-over-year comparisons