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What changed in Entergy's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Entergy's 2024 and 2025 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 2025 report.

+1957 added−1856 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-18)

Top changes in Entergy's 2025 10-K

1957 paragraphs added · 1856 removed · 249 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

226 edited+93 added−417 removed231 unchanged
Biggest changeFuel Supply The average fuel cost per kWh for the Utility operating companies and System Energy for the years 2022-2024 were: Year Natural Gas Nuclear Coal Renewables (a) Purchased Power MISO Purchases (b) 2024 (Cents Per kWh) Entergy Arkansas 2.02 0.57 3.04 1.67 10.21 0.37 Entergy Louisiana 2.30 0.73 3.34 11.48 3.70 2.32 Entergy Mississippi 1.86 — 2.60 0.11 2.36 2.89 Entergy New Orleans (c) 2.26 — — 3.60 — 2.75 Entergy Texas 2.04 — 3.33 3.53 6.80 2.80 System Energy — 0.65 — — — — Utility 2.14 0.65 3.00 5.85 3.73 2.38 2023 Entergy Arkansas 1.98 0.50 3.09 1.98 11.57 0.77 Entergy Louisiana 2.34 0.60 3.22 10.38 3.76 2.50 Entergy Mississippi 2.21 — 2.82 0.03 5.86 1.84 Entergy New Orleans (c) 2.05 — — 3.24 — 2.33 Entergy Texas 2.29 — 3.17 2.25 5.64 3.18 System Energy — 0.68 — — — — Utility 2.25 0.58 3.06 6.14 4.03 2.61 2022 Entergy Arkansas 4.98 0.52 2.93 2.11 10.90 (2.65) Entergy Louisiana 5.50 0.57 2.84 10.70 6.95 6.45 Entergy Mississippi 4.38 — 2.85 0.04 6.53 6.68 Entergy New Orleans (c) 5.10 — — (5.16) — 7.21 Entergy Texas 5.77 — 2.83 6.26 5.61 6.68 System Energy — 0.65 — — — — Utility 5.27 0.57 2.89 7.00 6.54 5.95 (a) Includes average fuel costs from both owned and purchased power resources. 263 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy (b) Includes activity from financial transmission rights.
Biggest changeThe Lewis Creek generating station of Entergy Texas was acquired by merger with a subsidiary of Entergy Texas and is currently not subject to the lien of the Entergy Texas indenture. 270 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Fuel Supply The average fuel cost per kWh for the Utility operating companies and System Energy for the years 2023-2025 were: Year Natural Gas Nuclear Coal Renewables (a) Purchased Power MISO Purchases (b) 2025 (Cents Per kWh) Entergy Arkansas 2.77 0.66 3.09 1.14 13.25 1.87 Entergy Louisiana 3.23 0.72 3.45 9.71 4.63 3.74 Entergy Mississippi (c) 2.66 — 2.70 0.13 276.93 3.19 Entergy New Orleans 2.93 — — 4.33 27.27 4.80 Entergy Texas (c) 2.98 — 3.22 2.90 16.49 4.20 System Energy — 0.61 — — — — Utility 3.04 0.67 3.08 4.55 4.88 3.72 2024 Entergy Arkansas 2.02 0.57 3.04 1.67 10.21 0.37 Entergy Louisiana 2.30 0.73 3.34 11.48 3.70 2.32 Entergy Mississippi 1.86 — 2.60 0.11 2.36 2.89 Entergy New Orleans 2.26 — — 3.60 — 2.75 Entergy Texas 2.04 — 3.33 3.53 6.80 2.80 System Energy — 0.65 — — — — Utility 2.14 0.65 3.00 5.85 3.73 2.38 2023 Entergy Arkansas 1.98 0.50 3.09 1.98 11.57 0.77 Entergy Louisiana 2.34 0.60 3.22 10.38 3.76 2.50 Entergy Mississippi 2.21 — 2.82 0.03 5.86 1.84 Entergy New Orleans 2.05 — — 3.24 — 2.33 Entergy Texas 2.29 — 3.17 2.25 5.64 3.18 System Energy — 0.68 — — — — Utility 2.25 0.58 3.06 6.14 4.03 2.61 (a) Includes average fuel costs from both owned and purchased power resources.
(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.
(b) Based on $2.2 billion in accumulated deferred income taxes at a 0% cost rate included in the weighted-average cost of capital calculation.
In addition, some of the Utility operating companies are engaged in discussions with other prospective customers concerning potential service to other data center projects.
In addition, some of the Utility operating companies are engaged in discussions with prospective customers concerning potential service to other data center projects.
This process generally involves parties that wish to interconnect new generation resources submitting to MISO requests to do so, which are then studied and analyzed by MISO, with the participation of its member transmission owners, to determine if the interconnection of such generators requires new transmission facilities to ensure the continued reliable operations of the grid.
This process generally involves parties that wish to interconnect new generation resources submitting MISO requests to do so, which are then studied and analyzed by MISO, with the participation of its member transmission owners, to determine if the interconnection of such generators requires new transmission facilities to ensure the continued reliable operations of the grid.
The Federal Power Act gives the FERC jurisdiction over the rates charged by System Energy for Grand Gulf capacity and energy provided to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. The FERC also has jurisdiction over the rates charged by Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas to unaffiliated wholesale customers.
The Federal Power Act gives the FERC jurisdiction over the rates charged by System Energy for Grand Gulf capacity and energy provided to Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans. The FERC also has jurisdiction over the rates charged by Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas to unaffiliated wholesale customers.
As of November 2020, both sites are operating the new system and no longer are sending waste to the recycle ponds. Each site commenced closure of its two recycle ponds (four ponds total) prior to the April 11, 2021 deadline for unlined recycle ponds and the ponds were certified closed in October 2023.
As of November 2020, both sites are operating the new system and are no longer sending waste to the recycle ponds. Each site commenced closure of its two recycle ponds (four ponds total) prior to the April 11, 2021 deadline for unlined recycle ponds and the ponds were certified closed in October 2023.
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.
Utility Regulatory Risks • The terms and conditions of service, including electric 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 usage and otherwise materially affect the Utility operating companies’ results of operations.
In these assignments, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans further agreed that, in the event they were prohibited by governmental action from making payments under the Availability Agreement (for example, if the FERC reduced or disallowed such payments as constituting excessive rates), they would then make subordinated advances to System Energy in the same amounts and at the same times as the prohibited payments.
In these assignments, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans further agreed that, in the event they were prohibited by governmental action from making payments under the 1974 Availability Agreement (for example, if the FERC reduced or disallowed such payments as constituting excessive rates), they would then make subordinated advances to System Energy in the same amounts and at the same times as the prohibited payments.
These ordinances contain a continuing option for the City of New Orleans to purchase Entergy New Orleans’s electric and gas utility properties. Entergy Texas holds a certificate of convenience and necessity from the PUCT to provide electric service to areas within approximately 27 counties in eastern Texas and holds non-exclusive franchises to provide electric service in approximately 70 incorporated municipalities.
These ordinances contain a continuing option for the City of New Orleans to purchase Entergy New Orleans’s electric utility properties. Entergy Texas holds a certificate of convenience and necessity from the PUCT to provide electric service to areas within approximately 27 counties in eastern Texas and holds non-exclusive franchises to provide electric service in approximately 70 incorporated municipalities.
Disruptions 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. 240 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 execute on their growth strategies and to complete 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. • The success of certain Utility operating companies’ investments in new generation and transmission assets to support large-scale data centers depends on a limited number of customers, the continued demand for electricity to power data centers and the successful completion of the associated generation and transmission projects.
Disruptions 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. 247 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, 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 execute on their growth strategies and to complete 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. • The success of certain Utility operating companies’ investments in new generation and transmission assets to support large-scale data centers depends on a limited number of such customers, the continued demand for electricity to power data centers and the successful completion of the associated generation and transmission projects.
Large-scale data center customers often have sustainability goals and commitments that require the sourcing of power for these facilities from renewable or emissions-free resources, such as solar, wind, or nuclear resources, or installation of carbon capture or other technologies to reduce emissions.
Large-scale data center customers often have sustainability goals and commitments that may require the sourcing of power for these facilities from renewable or emissions-free resources, such as solar, wind, or nuclear resources, or installation of carbon capture or other technologies to reduce emissions.
Sales of capacity and energy under the Availability Agreement would require that the Availability Agreement be submitted to the FERC for approval with respect to the terms of such sale. No such filing with the FERC has been made because sales of capacity and energy from Grand Gulf are being made pursuant to the Unit Power Sales Agreement.
Sales of capacity and energy under the 2025 Availability Agreement would require that the 2025 Availability Agreement be submitted to the FERC for approval with respect to the terms of such sale. No such filing with the FERC has been made because sales of capacity and energy from Grand Gulf are being made pursuant to the Unit Power Sales Agreement.
Entergy New Orleans is subject to regulation by the City Council as to the following: • utility service; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the fuel adjustment charge and purchased gas adjustment charge; • terms and conditions of service; • service standards; • audit of the environmental adjustment charge; • certification of the construction or extension of any new plant, equipment, property, or facility that comprises more than 2% of the utility’s rate base; • integrated resource planning; • net energy metering; • avoided cost payments to non-exempt Qualifying Facilities; • issuance and sale of certain securities; and • utility mergers and acquisitions and other changes of control.
Entergy New Orleans is subject to regulation by the City Council as to the following: • utility service; • retail rates and charges, including depreciation rates; • fuel cost recovery, including audits of the fuel adjustment charge; • terms and conditions of service; • service standards; • audit of the environmental adjustment charge; • certification of the construction or extension of any new plant, equipment, property, or facility that comprises more than 2% of the utility’s rate base; • integrated resource planning; • net energy metering; • avoided cost payments to non-exempt Qualifying Facilities; • issuance and sale of certain securities; and • utility mergers and acquisitions and other changes of control.
Extending service to large data center customers also may carry significant potential benefits to the Utility operating companies’ existing customer base as well as significant economic development benefits for the states and communities in which the new data centers are sited.
Extending service to large-scale data center customers also may carry significant potential benefits to the Utility operating companies’ existing customer base as well as significant economic development benefits for the states and communities in which the new data centers are sited.
For conversion and enrichment services, like uranium, Entergy diversifies its supply by supplier and country and may take special measures as needed to ensure supply of enriched uranium for the reliable fabrication of nuclear fuel.
For conversion and enrichment services, Entergy diversifies its supply by supplier and country and may take special measures as needed to ensure supply of enriched uranium for the reliable fabrication of 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 2025.
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 2026.
If, for any reason, sales of capacity and energy are made in the future pursuant to the Availability Agreement, the jurisdictional portions of the Availability Agreement would be submitted to the FERC for approval.
If, for any reason, sales of capacity and energy are made in the future pursuant to the 2025 Availability Agreement, the jurisdictional portions of the 2025 Availability Agreement would be submitted to the FERC for approval.
Pursuant to purchased power agreements, Entergy Arkansas is selling a portion of its owned capacity and energy from Grand Gulf to Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans.
Pursuant to purchased power agreements, Entergy Arkansas is selling a portion of its owned capacity and energy from Grand Gulf to Entergy Mississippi and Entergy New Orleans.
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.
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 262 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy products, including long-term contractual products and asset acquisitions.
This fleet of generators would also be available to customers during outages to supply backup electric service as part of a program known as “Power Through.” In its 2021 session, the Texas legislature modified the Texas Utilities Code to exempt generators under 10 megawatts from the requirement to obtain a certificate of convenience and necessity.
This fleet of generators would also be available to customers during outages to supply backup electric service as part of a program known as “Power Through.” In its 2021 session, the Texas legislature modified the Texas Utilities Code to exempt generators under 10 MW from the requirement to obtain a certificate of convenience and necessity.
Due to Entergy’s commitment to cease burning coal by the end of 2030, Entergy’s coal-fired generating units are expected to be exempt from this aspect of the final rule. The emission guidelines also include CO 2 efficiency standards for existing gas-fired steam EGUs. These emission standards will apply beginning January 1, 2030.
Due to Entergy’s intention to cease burning coal by the end of 2030, Entergy’s coal-fired generating units are expected to be exempt from this aspect of the final rule. The emission guidelines also include CO 2 efficiency standards for existing gas-fired steam EGUs. These emission standards will apply beginning January 1, 2030.
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.
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 2026.
Entergy Mississippi may continue to serve in such municipalities upon payment of a statutory franchise fee, regardless of whether an original municipal franchise is still in existence. Entergy New Orleans provides electric and gas service in the City of New Orleans pursuant to indeterminate permits set forth in city ordinances.
Entergy Mississippi may continue to serve in such municipalities upon payment of a statutory franchise fee, regardless of whether an original municipal franchise is still in existence. Entergy New Orleans provides electric service in the City of New Orleans pursuant to indeterminate permits set forth in city ordinances.
Based upon currently planned fuel cycles, the Utility nuclear units have a diversified portfolio of contracts and inventory that provides substantially adequate nuclear fuel materials and conversion and enrichment services at what Entergy believes are reasonably predictable or fixed prices through 2027.
Based upon currently planned fuel cycles, the Utility nuclear units have a diversified portfolio of contracts and inventory that provides substantially adequate nuclear fuel materials and conversion and enrichment services at what Entergy believes are reasonably predictable or fixed prices through 2029.
Certain contractual arrangements relating to System Energy, the affiliated companies, and these revenues are the subject of ongoing and potential future litigation and regulatory proceedings. • 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. • The hazardous activities associated with power generation and delivery could adversely impact our results of operations and financial condition. 241 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy ENTERGY’S BUSINESS Entergy is an integrated energy company engaged primarily in electric power production and retail distribution operations.
Certain contractual arrangements relating to System Energy, such affiliated companies, and these revenues are the subject of ongoing and potential future litigation and regulatory proceedings. • 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. • The hazardous activities associated with power generation and delivery could adversely impact our results of operations and financial condition. 248 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy ENTERGY’S BUSINESS Entergy is an integrated energy company engaged primarily in electric power production and energy delivery to retail customers.
As part of Entergy Arkansas’s base rate case in 2026, Entergy Arkansas may include a request for continued regulation under a formula rate review mechanism. Fuel and Purchased Power Cost Recovery Entergy Arkansas’s rate schedules include an energy cost recovery rider to recover fuel and purchased power costs in monthly bills.
As part of Entergy Arkansas’s base rate case in 2026, Entergy Arkansas will include a request for continued regulation under a formula rate review mechanism. Fuel and Purchased Power Cost Recovery Entergy Arkansas’s rate schedules include an energy cost recovery rider to recover fuel and purchased power costs in monthly bills.
Any 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.
Any 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. • 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.
This interest of prospective large-scale data center customers in sustainable and clean generating resources coincides with the Entergy’s own sustainability commitments and informs the Utility operating companies’ strategies and resource planning solutions to serve these prospective customers’ needs.
This interest of prospective large-scale data center customers in sustainable and clean generating resources coincides with Entergy’s own sustainability objectives and informs the Utility operating companies’ strategies and resource planning solutions to serve these prospective customers’ needs.
For the year ended December 31, 2024, coal transportation delivery rates to Entergy Arkansas- and Entergy Louisiana-operated coal-fired units were able to fully meet supply needs and obligations, and delivery rates in 2025 are expected to continue to be consistent with 2024 delivery rates in meeting supply needs and obligations.
For the year ended December 31, 2025, coal transportation delivery rates to Entergy Arkansas- and Entergy Louisiana-operated coal-fired units were able to fully meet supply needs and obligations, and delivery rates in 2026 are expected to continue to be consistent with 2025 delivery rates in meeting supply needs and obligations.
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.
Notwithstanding this reference or any references to the website in this report, the contents of the website are not incorporated into this report. 294 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy
In March 2023 filings with the NRC were made reporting on decommissioning funding for all of Entergy’s subsidiaries’ nuclear plants. Those reports showed that decommissioning funding for each of the nuclear plants met the NRC’s financial assurance requirements.
In March 2025 filings with the NRC were made reporting on decommissioning funding for all of Entergy’s subsidiaries’ nuclear plants. Those reports showed that decommissioning funding for each of the nuclear plants met the NRC’s financial assurance requirements.
Entergy Texas typically obtains 25-year franchise agreements as existing agreements expire. Entergy Texas’s electric franchises expire over the period 2025-2058. The business of System Energy is limited to wholesale power sales.
Entergy Texas typically obtains 25-year franchise agreements as existing agreements expire. Entergy Texas’s electric franchises expire over the period 2026-2058. The business of System Energy is limited to wholesale power sales.
The West Memphis Solar facility commenced commercial operation in December 2024; • In December 2020, Entergy Texas selected the 1,158 MW self-build alternative, Orange County Advanced Power Station, out of the 2020 Entergy Texas combined-cycle, gas turbine RFP. Regulatory approval was received in November 2022 and construction has commenced.
In August 2024, Entergy Arkansas acquired the facility. The West Memphis Solar facility commenced commercial operation in December 2024; • In December 2020, Entergy Texas selected the 1,158 MW self-build alternative, Orange County Advanced Power Station, out of the 2020 Entergy Texas combined cycle, gas turbine RFP. Regulatory approval was received in November 2022 and construction has commenced.
Since commercial operation of Grand Gulf began, payments under the Unit Power Sales Agreement to System Energy have exceeded the amounts payable under the Availability Agreement and, therefore, no payments under the Availability Agreement to System Energy have ever been required.
Since commercial operation of Grand Gulf began, payments under the Unit Power Sales Agreement to System Energy have exceeded the amounts payable under either version of the Availability Agreement and, therefore, no payments under either version of the Availability Agreement to System Energy have ever been required.
CCR utilized in roadbeds and embankments is excluded from the CCRMU definition. Entergy does not have any legacy impoundments; however, the definition of CCR management units includes on-site areas where CCR was beneficially used. This is contrary to the 2015 CCR Rule which exempted beneficial uses that met certain criteria.
CCR utilized in roadbeds and embankments is excluded from the CCRMU definition. Entergy does not have any legacy impoundments; however, the definition of CCRMUs includes on-site areas where CCR was beneficially used. This is contrary to the 2015 CCR Rule which exempted beneficial uses that met certain criteria.
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.
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 2026. Entergy Louisiana has committed to four two- to three-year contracts that will supply at least 90% of Nelson Unit 6 coal needs in 2026.
The FERC regulates wholesale sales of electricity rates and interstate transmission of electricity, including System Energy’s sales of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans pursuant to the Unit Power Sales Agreement. See Note 2 to the financial statements for further discussion of federal regulation proceedings.
The FERC regulates wholesale sales of electricity rates and interstate transmission of electricity, including System Energy’s sales of capacity and energy from Grand Gulf to Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans pursuant to the Unit Power Sales Agreement. See Note 2 to the financial statements for further discussion of federal regulatory proceedings.
The facility is expected to achieve commercial operation by early 2028. 256 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy The RFP process has also resulted in the selection, or confirmation of the economic merits of, long-term purchased power agreements (PPAs), including, among others: • River Bend’s 30% life-of-unit PPA between Entergy Louisiana and Entergy New Orleans for 100 MW related to Entergy Louisiana’s unregulated portion of the River Bend nuclear station, which portion was formerly owned by Cajun; • Entergy Arkansas’s wholesale base load capacity life-of-unit PPAs executed in 2003 totaling approximately 220 MW between Entergy Arkansas and Entergy Louisiana (110 MW) and between Entergy Arkansas and Entergy New Orleans (110 MW) related to the sale of a portion of Entergy Arkansas’s coal and nuclear base load resources (which had not been included in Entergy Arkansas’s retail rates); • In September 2012, Entergy Gulf States Louisiana and Rain CII Carbon LLC executed a 20-year agreement for 28 MW, with the potential to purchase an additional 9 MW when available, from a petroleum coke calcining facility in Sulphur, Louisiana.
The RFP process has also resulted in the selection, or confirmation of the economic merits of, long-term purchased power agreements (PPAs), including, among others: • River Bend’s 30% life-of-unit PPA between Entergy Louisiana and Entergy New Orleans for 100 MW related to Entergy Louisiana’s unregulated portion of the River Bend nuclear station, which portion was formerly owned by Cajun; • Entergy Arkansas’s wholesale base load capacity life-of-unit PPAs executed in 2003 totaling approximately 220 MW between Entergy Arkansas and Entergy Louisiana (110 MW) and between Entergy Arkansas and 263 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Entergy New Orleans (110 MW) related to the sale of a portion of Entergy Arkansas’s coal and nuclear base load resources (which had not been included in Entergy Arkansas’s retail rates); • In September 2012, Entergy Gulf States Louisiana and Rain CII Carbon LLC executed a 20-year agreement for 28 MW, with the potential to purchase an additional 9 MW when available, from a petroleum coke calcining facility in Sulphur, Louisiana.
In December 2020, Entergy Texas filed an application with the PUCT to amend its certificate of convenience and necessity to own and operate up to 75 MW of natural gas-fired distributed generation to be installed at commercial and industrial customer premises.
Power Through Programs In December 2020, Entergy Texas filed an application with the PUCT to amend its certificate of convenience and necessity to own and operate up to 75 MW of natural gas-fired distributed generation to be installed at commercial and industrial customer premises.
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.
Entergy owns and operates power plants with approximately 25,000 MW of electric generating capacity. Entergy delivers electricity to approximately 3.1 million Utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy had annual revenues of $12.9 billion in 2025 and had approximately 12,000 employees as of December 31, 2025. Entergy operates primarily through a single reportable segment, Utility.
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.
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, 2025 of $225 million for the one-time fee. The fees payable to the DOE may be adjusted in the future to assure full recovery.
In June 2023 the APSC approved Entergy Arkansas’s Go ZERO tariff, which provides participating industrial and commercial customers the opportunity to choose from a number of clean energy options to help them achieve their sustainability goals. The APSC has approved offerings of 240 MW to be made available under this tariff.
The APSC has approved offerings of 280 MW of solar capacity to be made available under this tariff. In June 2023 the APSC approved Entergy Arkansas’s Go ZERO tariff, which provides participating industrial and commercial customers the opportunity to choose from a number of clean energy options to help them achieve their sustainability goals.
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 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 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.
(d) Based on September 30, 2023 test year. (e) Based on 2024 forward test year. (f) Based on December 31, 2023 test year and known and measurables through December 31, 2024. (g) In October 2023 the City Council approved a three-year extension of Entergy New Orleans’s formula rate plan, modified to reflect a 55% equity ratio for rate setting purposes.
(d) Based on 2025 forward test year. (e) Based on December 31, 2024 test year and known and measurables through December 31, 2025. (f) In October 2023 the City Council approved a three-year extension of Entergy New Orleans’s formula rate plan, modified to reflect a 55% equity ratio for rate setting purposes.
Good Neighbor Plan/Cross-State Air Pollution Rule In March 2005 the EPA finalized the Clean Air Interstate Rule (CAIR), which was intended to reduce SO 2 and NO x emissions from electric generation plants in order to improve air quality in twenty-nine eastern states.
Good Neighbor Plan/Cross-State Air Pollution Rule In March 2005 the EPA finalized the Clean Air Interstate Rule (CAIR), which was intended to reduce sulfur dioxides (SO 2 ) and nitrogen oxides (NO x ) emissions from electric generation plants in order to improve air quality in twenty-nine eastern states.
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.
Coal Entergy Arkansas has committed to six one- to three-year contracts that will supply at least 85% of the total coal supply needs in 2026. These contracts are staggered in term so that not all contracts have to be renewed the same year.
The initial five-year term expired in 2021. As granted by Arkansas law, Entergy Arkansas obtained APSC approval of the extension of the formula rate plan tariff for an additional five-year term, through 2026. As part of the settlement of the 2023 formula rate plan proceeding, Entergy Arkansas agreed to file its next base rate case no later than February 2026.
As granted by Arkansas law, Entergy Arkansas obtained APSC approval of the extension of the formula rate plan tariff for an additional five-year term, through 2026. As part of the settlement of the 2023 formula rate plan proceeding, Entergy Arkansas agreed to file its next base rate case no later than February 27, 2026.
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 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.
The Talent and Compensation Committee is responsible for overseeing and monitoring the effectiveness of Entergy’s human capital strategies and initiatives, including those pertaining to talent management, diversity, inclusion and belonging, organizational health, retention, safety, and executive compensation and performance, and receives briefings on these and other topics.
The Talent and Compensation Committee is responsible for overseeing and monitoring the effectiveness of Entergy’s human capital strategies and initiatives, including those pertaining to talent management; organizational health and employee experience, including inclusion and belonging; retention and succession planning; safety; and executive compensation and performance, and receives briefings on these and other topics.
Louisiana issued its draft SIP which did not propose any additional air emissions controls for the affected Entergy units in Louisiana. Some public commenters, however, believe additional air controls are cost-effective. In August 2024, Louisiana issued a revised SIP proposal for public comment.
Louisiana issued its draft SIP which did not propose any additional air emissions controls for the affected Entergy units in Louisiana. Some public commenters, however, believe additional air controls are cost-effective. In August 2024, Louisiana issued a revised SIP proposal for public comment, and following public comment, re-issued the revised SIP proposal in February 2025.
Summer peak load for the Utility has averaged 21,998 MW over the previous decade. The Utility operating companies’ load and capacity projections are reviewed periodically to assess the need and timing for additional generating capacity and interconnections.
Summer peak load for the Utility has averaged 22,168 MW over the previous decade. The Utility operating companies’ load and capacity projections are reviewed periodically to assess the need and timing for additional generating capacity and interconnections.
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.
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 9,430 MW of new long-term resources and the deactivation of about 4,004 MW of legacy generation.
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.
Through 2025 , Entergy’s subsidiaries have won and collected on judgments against the government totaling approximatel y $1.2 billion. Pending DOE acceptance and disposal of spent nuclear fuel, the owners of nuclear plants are providing their own spent fuel storage.
See “ Held for Sale - Natural Gas Distribution Businesses ” in Note 14 to the financial statements for discussion of the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. Also included in the Utility is System Energy, a wholly-owned subsidiary of Entergy Corporation that owns or leases 90 percent of Grand Gulf.
See “ Dispositions - Natural Gas Distribution Businesses ” in Note 14 to the financial statements for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Also included in the Utility is System Energy, a wholly-owned subsidiary of Entergy Corporation that owns or leases 90 percent of Grand Gulf.
New legislation or regulations applicable to stationary sources could take the form of market-based cap-and-trade programs, direct requirements for the installation of air emission controls onto air emission sources, or other or combined regulatory programs; • efforts in Congress or at the EPA to establish a federal carbon dioxide emission tax, control structure, or unit performance standards; • revisions to the estimates of the Social Cost of Carbon and its use for regulatory impact analysis of federal laws and regulations; • implementation of the regional cap and trade programs to limit carbon dioxide and other greenhouse gases; • efforts on the local, state, and federal level to codify renewable portfolio standards, clean energy standards, or a similar mechanism requiring utilities to produce or purchase a certain percentage of their power from defined renewable energy sources or energy sources with lower emissions; • efforts to develop more stringent state water quality standards, effluent limitations for Entergy’s industry sector, stormwater runoff control regulations, and cooling water intake structure requirements; • efforts to restrict the previously-approved continued use of oil-filled equipment containing certain levels of polychlorinated biphenyls (PCBs) and increased regulation of per- and polyfluorinated substances or other chemicals; • efforts by certain external groups to encourage reporting and disclosure of environmental, social, and governance risk; • the listing of additional species as threatened or endangered, the protection of critical habitat for these species, and developments in the legal protection of eagles and migratory birds; • the regulation of the management, disposal, and beneficial reuse of coal combustion residuals; and • the regulation of the management and disposal and recycling of equipment associated with renewable and clean energy sources such as used solar panels, wind turbine blades, hydrogen usage, or battery storage. 282 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Comprehensive Environmental Response, Compensation, and Liability Act of 1980 The Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA), authorizes the EPA to mandate clean-up by, or to collect reimbursement of clean-up costs from, owners or operators of sites at which hazardous substances may be or have been released.
New legislation or regulations applicable to stationary sources could take the form of market-based cap-and-trade programs, direct requirements for the installation of air emission controls onto air emission sources, or other or combined regulatory programs; • efforts in Congress or at the EPA to establish a federal carbon dioxide emission tax, control structure, or unit performance standards; • revisions to the estimates of the Social Cost of Carbon and its use for regulatory impact analysis of federal laws and regulations; • implementation of the regional cap and trade programs to limit carbon dioxide and other greenhouse gases; • efforts on the local, state, and federal level to codify renewable portfolio standards, clean energy standards, or a similar mechanism requiring utilities to produce or purchase a certain percentage of their power from defined renewable energy sources or energy sources with lower emissions; • efforts to develop more stringent state water quality standards, effluent limitations for Entergy’s industry sector, stormwater runoff control regulations, and cooling water intake structure requirements; 290 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy • efforts to restrict the previously-approved continued use of oil-filled equipment containing certain levels of polychlorinated biphenyls (PCBs) and increased regulation of per- and polyfluorinated substances or other chemicals; • efforts by certain external groups to encourage reporting and disclosure of environmental, social, and governance risk; • efforts by state agencies to start new regulatory programs or acquire primacy of federal programs; • the listing of additional species as threatened or endangered, the protection of critical habitat for these species, and developments in the legal protection of eagles and migratory birds; • the regulation of the management, disposal, and beneficial reuse of coal combustion residuals; and • the regulation of the management and disposal and recycling of equipment associated with renewable and clean energy sources such as used solar panels, wind turbine blades, hydrogen usage, or battery storage.
Many of these data center customers are willing to contribute a significant portion of the cost of these facilities in order to access these sustainable or emissions-free resources, which arrangements have the potential to lower the costs of such resources as reflected in the rates of the Utility operating companies to the benefit of their other customers.
Many of these data center customers are willing to contribute a significant portion of the cost of these facilities in order to access these sustainable or emissions-free resources, including through subscriptions to renewable tariff offerings by the Utility operating companies, which arrangements have the potential to lower the costs of such resources as reflected in the rates of the Utility operating companies to the benefit of their other customers.
Coal will be transported to Nelson via an existing transportation agreement that is expected to provide all of Entergy Louisiana’s rail transportation requirements for 2025.
Coal will be transported to Nelson via an existing Union Pacific transportation agreement that is expected to provide all of Entergy Louisiana’s rail transportation requirements for 2026.
Entergy’s Approach to Human Resources Entergy’s people and culture enable its success; that is why acquiring, retaining, and developing talent are important components of Entergy’s human resources strategy. Entergy focuses on an approach that includes, among other things, governance and oversight; safety; organizational health, including diversity, inclusion, and belonging; and talent management.
Entergy’s Approach to Human Resources Entergy’s people and culture enable its success; that is why acquiring, retaining, and developing talent are important components of Entergy’s human resources strategy. Entergy’s approach to human capital management focuses on the employee experience and includes, among other things, governance and oversight; safety; organizational health, including inclusion and belonging; and talent management.
Entergy Services and Entergy Operations provide their services to the Utility operating companies and System Energy on an “at cost” basis, pursuant to cost allocation methodologies for these service agreements that were approved by the FERC.
Entergy Services and Entergy Operations provide their services, under service agreements approved by the FERC, to the Utility operating companies and System Energy on an “at cost” basis, pursuant to cost allocation methodologies.
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.
In September 2023 the APSC approved the PPA, and the facility achieved commercial operation in August 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.
Entergy New Orleans Formula Rate Plan As part of its determination of rates in the base rate case filed by Entergy New Orleans in 2018, in November 2019, the City Council issued a resolution resolving the rate case, with rates to become effective retroactive to August 2019.
Registration for the Schedule RCO launched in May 2023. Entergy New Orleans Formula Rate Plan As part of its determination of rates in the base rate case filed by Entergy New Orleans in 2018, in November 2019, the City Council issued a resolution resolving the rate case, with rates to become effective retroactive to August 2019.
The amending language in the law provides, among other things, that: (1) the tariff shall not be implemented in a manner that harms the sustainability or competitiveness of manufacturers who choose not to participate in the tariff; (2) Entergy Texas shall “purchase competitive generation service, selected by the customer, and provide the generation at retail to the customer;” and (3) Entergy Texas shall provide and price transmission service and ancillary services under that tariff at a rate that is unbundled from its cost of service.
The amending language in the law provides, among other things, that: (1) the tariff shall not be implemented in a manner that harms the sustainability or competitiveness of manufacturers who choose not to participate in the tariff; (2) Entergy Texas shall “purchase competitive generation service, selected by the customer, and provide the generation at retail 260 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy to the customer;” and (3) Entergy Texas shall provide and price transmission service and ancillary services under that tariff at a rate that is unbundled from its cost of service.
The LPSC is expected to consider the motion at its March 2025 meeting. Other In March 2016 the LPSC opened two dockets to examine, on a generic basis, issues that it identified in connection with its review of Cleco Corporation’s acquisition by third party investors.
Other In March 2016 the LPSC opened two dockets to examine, on a generic basis, issues that it identified in connection with its review of Cleco Corporation’s acquisition by third party investors.
(h) Based on December 31, 2021 test year and excludes $0.5 billion in cost recovery riders. (i) Based on calculation as of December 31, 2024 for Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans.
(g) Based on December 31, 2021 test year and excludes $0.9 billion in cost recovery riders. (h) Based on calculation as of December 31, 2025 for Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans.
Any increase above 4% requires a base rate case. If Entergy Mississippi’s formula rate plan were terminated without replacement, it would revert to the more traditional rate case environment or seek approval of a new formula rate plan.
If Entergy Mississippi’s formula rate plan were terminated without replacement, it would revert to the more traditional rate case environment or seek approval of a new formula rate plan.
Entergy buys uranium from a diversified mix of sellers located in a diversified mix of countries, and from time to time purchases from nearly all qualified reliable major market participants worldwide that sell into the U.S.
Entergy buys uranium and conversion and enrichment services from a diversified mix of sellers located in a diversified mix of countries, and from time to time purchases from nearly all qualified reliable major market participants worldwide that sell into the United States.
Entergy Texas purchases from Entergy Louisiana pursuant to a life-of-unit purchased power agreement a 42.5% share of capacity and energy from the 70% of River Bend subject to retail regulation.
Entergy Texas purchases from Entergy Louisiana pursuant to a life-of-unit purchased power agreement a 42.5% share of capacity and energy from the 70% of River Bend subject to retail regulation of the depreciation amount in Entergy Texas’s rates and otherwise subject to federal regulation.
Most of the substations and transmission and distribution lines are constructed on private property or public rights-of-way pursuant to easements, servitudes, or appropriate franchises. Some substation properties are owned in fee simple.
Title The Utility operating companies’ generating stations are generally located on properties owned in fee simple. Most of the substations and transmission and distribution lines are constructed on private property or public rights-of-way pursuant to easements, servitudes, or appropriate franchises. Some substation properties are owned in fee simple.
In February 2024, Entergy Arkansas acquired the facility. The Walnut Bend Solar facility commenced commercial operation in September 2024; • In September 2020, Entergy Arkansas signed an agreement for the purchase of an approximately 180 MW to-be-constructed solar photovoltaic energy facility, West Memphis Solar facility, located in Crittenden County, Arkansas.
The Walnut Bend Solar facility commenced commercial operation in September 2024; • In September 2020, Entergy Arkansas signed an agreement for the purchase of an approximately 180 MW to-be-constructed solar photovoltaic energy facility, West Memphis Solar facility, located in Crittenden County, Arkansas. In October 2021 the APSC issued an order approving the acquisition of the West Memphis Solar facility.
Because of the significant demand and energy needs associated with these facilities, which generally require power at levels near their maximum level of demand for sustained periods throughout the day and throughout the year, extending service to these facilities often requires investment in incremental generation and transmission facilities, with a resulting risk of stranded costs if expected demand does not materialize, although this risk can potentially be mitigated through appropriate commercial terms subject to negotiations with the customer.
Because of the significant demand and energy needs associated with these facilities, which generally involve large levels of maximum demand for sustained periods throughout the day and throughout the year, extending service to these facilities often requires investment in incremental generation and transmission facilities, with a resulting risk of stranded costs if expected demand does not materialize and this risk is not mitigated through appropriate commercial terms, which are subject to negotiations with the customer.
Entergy Louisiana, as successor in interest to Entergy Gulf States Louisiana, now holds the agreement with Agrilectric; • Entergy Mississippi’s cost-based purchase, beginning in January 2013, of 90 MW from Entergy Arkansas’s share of Grand Gulf (only 60 MW of this PPA came through the RFP process).
Entergy Louisiana, as successor in interest to Entergy Gulf States Louisiana, now holds the agreement with Agrilectric; • Entergy Mississippi’s cost-based purchase, beginning in January 2013, of 90 MW from Entergy Arkansas’s share of Grand Gulf.
These generating units consist of steam-turbine generators fueled by natural gas, coal, and pressurized and boiling water nuclear reactors; combustion-turbine generators, combined-cycle combustion turbine generators and reciprocating internal combustion engine generators that are fueled by natural gas; an d inverter-based resources interconnecting both solar photovoltaic systems and energy storage devices that participate in the MISO wholesale electric market.
These generating units consist of steam-turbine generators fueled by natural gas, coal, and pressurized and boiling water nuclear reactors; combustion-turbine generators, combined cycle combustion turbine generators and reciprocating internal combustion engine generators that are fueled by natural 269 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy gas; an d inverter-based resources interconnecting both solar photovoltaic systems and energy storage devices that participate in the MISO wholesale electric market.
On August 6, 2024, Entergy reached a 2024 peak demand of 22,697 MWh, compared to the 2023 peak of 23,319 MWh recorded on August 23, 2023.
On July 22, 2025, Entergy reached a 2025 peak demand of 23,624 MWh, compared to the 2024 peak of 22,697 MWh recorded on August 6, 2024.
However, the rule does provide that net meter installations in place as of December 31, 2019 will be subject to 1:1 net metering with excess energy put to the grid being compensated at the 248 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy full retail rate for a period of 15 years (through December 31, 2034), after which those installations will be subject to 2-channel billing.
However, the rule does provide that net meter installations in place as of December 31, 2019 will be subject to 1:1 net metering with excess energy put to the grid being compensated at the full retail rate for a period of 15 years (through December 31, 2034), after which those installations will be subject to 2-channel billing.
The RFP is expected to continue through 2026 with selections expected throughout the process at the conclusion of each procurement window, as applicable. In November 2024, Entergy Services, on behalf of Entergy Louisiana, issued a Combined Cycle Combustion Turbine capacity and energy resources RFP which solicits up to 2,000 MW of generation.
The RFP is expected to continue through 2026 with additional selections expected throughout the process at the conclusion of each procurement window, as applicable. 265 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy In November 2024, Entergy Services, on behalf of Entergy Louisiana, issued a Combined Cycle Combustion Turbine capacity and energy resources RFP which solicits up to 2,000 MW of generation.
With the completion of the business combination, Entergy Louisiana holds substantially all of the assets, and has assumed the liabilities, of Old Entergy Louisiana and Old Entergy Gulf States Louisiana. 271 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Other Business Activities Entergy’s non-utility operations business includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers.
With the completion of the business combination, Entergy Louisiana holds substantially all of the assets, and has assumed the liabilities, of Old Entergy Louisiana and Old Entergy Gulf States Louisiana. Other Business Activities Entergy’s non-utility operations business includes the ownership of interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers.
Based on initial estimates of multiple possible remediation scenarios, Entergy recorded in 2024 a $42 million increase in its decommissioning cost liabilities for White Bluff and 283 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Independence, along with corresponding increases in the related asset retirement cost assets that will be depreciated over the remaining useful lives of the unit.
Based on initial estimates of multiple possible remediation scenarios, Entergy recorded in 2024 a $42 million increase in its decommissioning cost liabilities for White Bluff and Independence, along with corresponding increases in the related asset retirement cost assets that will be depreciated over the remaining useful lives of the unit.
See Note 8 to the financial statements for further discussion of the reallocation agreement. 270 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy Service Companies Entergy Services, a limited liability company wholly-owned by Entergy Corporation, provides management, administrative, accounting, legal, engineering, and other services primarily to the Utility operating companies, as well as to Entergy’s non-utility operations business.
Service Companies Entergy Services, a limited liability company wholly-owned by Entergy Corporation, provides management, administrative, accounting, legal, engineering, and other services primarily to the Utility operating 277 Table of Contents Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy companies, as well as to Entergy’s non-utility operations business.
The RFP process has resulted in selections or acquisitions, including, among other things: • In November 2018, Entergy Mississippi signed an agreement for the purchase of an approximately 100 MW to-be-constructed solar photovoltaic energy facility, Sunflower Solar facility, located in Sunflower County, Mississippi.
The RFP process has resulted in selections or acquisitions, including, among other things: • In June 2020, Entergy Arkansas signed an agreement for the purchase of an approximately 100 MW to-be-constructed solar photovoltaic energy facility, Walnut Bend Solar facility, located in Lee County, Arkansas.
See Note 2 to the financial statements for discussion of proceedings at the FERC related to System Energy. Unit Power Sales Agreement The Unit Power Sales Agreement allocates capacity, energy, and the related costs from System Energy’s ownership and leasehold interests in Grand Gulf to Entergy Arkansas (36%), Entergy Louisiana (14%), Entergy Mississippi (33%), and Entergy New Orleans (17%).
See Note 2 to the financial statements for discussion of proceedings at the FERC related to System Energy. Unit Power Sales Agreement The Unit Power Sales Agreement allocates capacity, energy, and the related costs from System Energy’s ownership and leasehold interests in Grand Gulf.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeSystem Energy’s operating revenues are derived from the allocation of the capacity, energy, and related costs associated with its 90% interest in Grand Gulf pursuant to the Unit Power Sales Agreement. Payments under the Unit Power Sales Agreement are System Energy’s only source of operating revenues.
Biggest changeCertain contractual arrangements relating to System Energy, such 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.
See “ MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates ” below and Note 11 to the financial statements for further discussion of pension and other postretirement benefits costs.
For further information regarding Entergy’s pension and other postretirement benefits plans, refer to the “ Critical Accounting Estimates – Qualified Pension and Other Postretirement Benefits ” section of Management’s Financial Discussion and Analysis for Entergy and each of its Registrant Subsidiaries and Note 11 to the financial statements.
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.
For further discussion of the effects of the Inflation Reduction Act of 2022, and the One Big Beautiful Bill Act of 2025, see the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 3 to the financial statements.
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.
For further information regarding nuclear decommissioning costs, see the “ Critical Accounting Estimates - Nuclear Decommissioning Costs ” section of Management’s Financial Discussion and Analysis for Entergy, Entergy Arkansas, Entergy Louisiana, and System Energy, and Notes 9 and 16 to the financial statements.
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.
For further information regarding spent fuel storage, see the “ Critical Accounting Estimates – Nuclear Decommissioning Costs – Spent Fuel Disposal ” section of Management’s Financial Discussion and Analysis for Entergy, Entergy Arkansas, Entergy Louisiana, and System Energy and Note 8 to the financial statements.
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 intended and unintended consequences of recently enacted legislation could have a material adverse impact on Entergy’s financial results and future cash flows. For further information regarding Entergy’s income taxes, see the “ Income Tax Legislation and Regulation ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis and Note 3 to the financial statements.
See Note 2 to the financial statements for discussion of the 2023 formula rate plan filing.
For information regarding rate case proceedings and formula rate plans applicable to the Utility operating companies, see Note 2 to the financial statements.
See Note 2 to the financial statements for a discussion of fuel and purchased power cost recovery.
For a description of fuel and purchased power recovery mechanisms and information regarding the regulatory proceedings for fuel and purchased power cost recovery, see Note 2 to the financial statements. The Utility operating companies are subject to economic risks associated with participation in the MISO markets and the allocation of transmission upgrade costs.
Removed
Item 1A. Risk Factors ” in Part I, Item 1A for a detailed description of the risks related to cybersecurity. Corporate Governance The Board of Directors is responsible for oversight of the identification, management, and mitigation of enterprise-wide risk, including cybersecurity risk.
Added
Item 1A. Risk Factors See “ RISK FACTORS SUMMARY ” in Part I, Item 1 for a summary of Entergy’s and the Registrant Subsidiaries’ risk factors. Investors should review carefully the following risk factors and the other information in this Form 10-K. The risks that Entergy faces are not limited to those in this section.
Removed
The Audit Committee has the primary responsibility for overseeing risk management, including oversight of cybersecurity risk management practices and performance. The Audit Committee generally receives reports at each regular quarterly meeting provided by the CSO, the CISO, the CIO, and the General Auditor on the cybersecurity management program.
Added
There may be additional risks and uncertainties (either currently unknown or not currently believed to be material) that could adversely affect Entergy’s business, financial condition, results of operations, and liquidity.
Removed
The reports focus on the programs and protocols in place to mitigate cybersecurity risks, led by the CSO.
Added
See “ FORWARD-LOOKING INFORMATION .” Utility Regulatory Risks (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) The terms and conditions of service, including electric rates, of the Utility operating companies and System Energy are determined through regulatory approval proceedings that can be lengthy and subject to appeal, potentially resulting in delays in effecting rate changes, lengthy litigation, the risk of disallowance of recovery of certain costs, and uncertainty as to ultimate results.
Removed
Among other things, the reports may include: recent cyber risk and cybersecurity developments; industry engagement activities; legislative and regulatory developments; cyber-risk governance and oversight; selected cyber risk metrics and activities; cyber risk incident response plans and strategies; cybersecurity drills and exercises; assessments by third party experts and Internal Audit; and major projects and initiatives.
Added
The Utility operating companies are regulated on a cost-of-service and rate of return basis and are subject to statutes and regulatory commission rules and procedures. The rates that the Utility operating companies and System Energy charge reflect their capital expenditures, operations and maintenance costs, allowed rates of return, financing costs, and related costs of service.
Removed
While the Board of Directors and Audit Committee oversee cybersecurity risk management, Entergy’s management is responsible for managing cybersecurity risk. Entergy and the Registrant Subsidiaries’ security-risk-management system, as discussed above, is comprised of a three lines of defense model to enhance risk management efforts and define roles in the security program.
Added
These rates significantly influence the financial condition, results of operations, and liquidity of Entergy and each of the Utility operating companies and System Energy. These rates are determined in regulatory proceedings and are subject to periodic regulatory review and adjustment, including adjustment upon the initiative of a regulator or, in some cases, affected stakeholders.
Removed
The first line of defense, comprised of business units performing operational functions, including the CISO and CIO, is responsible for identification and management of security and reliability risks directly through design, implementation, and execution of control activities.
Added
Regulators in a future rate proceeding may alter the timing or amount of certain costs for which recovery is allowed or modify the current authorized rate of return. Rate refunds may also be required, subject to applicable law.
Removed
The second line of defense, comprised of the CSO and Chief Security Office, performs and supports security and reliability risk management and governs and oversees the execution of security and reliability controls by the first line of defense.
Added
In addition, regulators have initiated and may initiate additional proceedings to investigate the prudence of costs in the Utility operating companies’ and System Energy’s base rates and examine, among other things, the reasonableness or prudence of the companies’ operation and maintenance practices, level of expenditures (including storm costs and costs associated with capital projects), allowed rates of return and rate base, proposed resource acquisitions, and previously incurred capital expenditures that the operating companies seek to place in rates.
Removed
Ownership of specific security operations may migrate from a business unit in the first line of defense to the second line of defense, as determined to be appropriate by the Chief Security Office.
Added
The regulators may disallow costs subject to their jurisdiction found not to have been prudently incurred or found not to have been incurred in compliance with applicable tariffs, creating some risk to the ultimate recovery of those costs. Regulatory proceedings relating to rates and other matters typically involve multiple parties seeking to limit or reduce rates.
Removed
The third line of defense, which includes Internal Audit, independent third parties, and certain regulatory constructs, such as the NERC Reliability Standards and the NRC Cyber Rule, provides assurance of selective actions taken by the first and second lines of defense to senior management and the Board of Directors.
Added
Traditional base rate proceedings, as opposed to formula rate plans, generally have long timelines, are primarily based on historical costs, and may or may not be limited in scope or duration by statute.
Removed
Entergy’s CSO is responsible for overseeing physical, cyber, and reliability risk, including governance, compliance, and threat intelligence. The CSO’s background includes serving as the Global Lead Business Information Security Officer for a multinational pharmaceutical and biotechnology company, Vice President of Cybersecurity Solutions for an international consulting firm, and an operations manager for a multinational technology company.
Added
The length of these base rate proceedings can cause the Utility operating companies and System Energy to experience regulatory lag in recovering costs through rates, such that the Utility operating companies may not fully recover all costs during the rate effective period and may, therefore, earn less than their allowed returns.
Removed
The CSO is also a former intelligence officer in the U.S. Marine Corps, with experience in 316 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy the Fleet Marine Force, Joint Staff J-2/Defense Intelligence Agency, and Headquarters Marine Corps Command, Control, Communications, and Computers (C4I).
Added
Decisions are typically subject to appeal, potentially leading to additional uncertainty associated with rate case proceedings. For a discussion of such appeals and related litigation for both the Utility operating companies and System Energy, see Note 2 to the financial statements.
Removed
The CSO participated in numerous exercises and crisis operations during his time in the military. The CSO is a member of the Information Systems Audit and Control Association and a certified Information Privacy Manager from the International Association of Privacy Professionals.
Added
The Utility operating companies have large customer and stakeholder bases and, as a result, could be the subject of public criticism or adverse publicity focused on issues including, but not limited to, efforts to obtain land and secure permits for infrastructure, efforts to execute on and/or obtain regulatory approvals for generation, transmission, carbon capture and storage, or other facilities, including, but not limited to, any such facilities that are 295 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy intended to support load growth to the system associated with large-scale data centers, the operation and maintenance of their assets and infrastructure, including with respect to climate or environmental matters, their preparedness for major storms or other extreme weather events (including accelerated resilience plans and projects, as well as executing same and/or seeking and obtaining regulatory approvals for such plans and projects) and/or the time it takes to restore service after such events, the quality of their customer service, including timely and accurate billing practices and ability to resolve customer complaints, and the reasonableness of the cost of their service.
Removed
The CSO also completed the Harvard Kennedy School Executive Education Program in Cybersecurity and the FBI Domestic Security Executive Academy. Entergy’s CISO is responsible for enterprise strategic and operational cybersecurity, physical security systems, and regulatory compliance. The CISO oversees investments in tools, resources, and processes that allow for the continuous improvement and maturity of Entergy’s cybersecurity posture.
Added
Criticism or adverse publicity of this nature could, among other things, result in project delays or cancellations or render legislatures and other governing bodies, public service commissions and other regulatory authorities, and government officials less likely to view the applicable operating company in a favorable light and potentially negatively affect legislative or regulatory processes or outcomes, including but not limited to failure to obtain requested approvals on infrastructure investments, as well as lead to increased regulatory oversight or more stringent legislative or regulatory requirements or other legislation or regulatory actions that adversely affect the Utility operating companies.
Removed
The CISO has expertise spanning more than 25 years in the realm of information technology, information security, and cyber/physical security management. The CISO’s background includes serving as the Vice President and Chief Information Security Officer for an electric utility with responsibility for enterprise cybersecurity covering corporate, electric, nuclear, and gas operations.
Added
The Utility operating companies and System Energy, and the energy industry as a whole, have experienced a period of rising costs and investments.
Removed
Additionally, the CISO served as the Chief Security Officer for the Electric Reliability Council of Texas with overall responsibility for its cybersecurity, physical security, and emergency management programs. Her previous experience includes multiple technical, managerial, and strategic roles within industries ranging from energy, telecommunication, software development, and cybersecurity consulting.
Added
An upward trend in spending, especially with respect to infrastructure investments (including those that have already been approved by a regulator), is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms, all of which could result in adverse cost recovery determinations and/or face resistance from customers and other stakeholders especially in a rising cost environment, whether due to inflation, increased tariffs or changes to governmental policies and programs, including tax incentives or tax credits, grants, guarantees, and other subsidies, or high fuel prices or otherwise, and/or in periods of economic decline or hardship.
Removed
The CISO is a Certified Information Systems Security Professional, Certified Information Security Manager, and Certified in Risk and Information Systems Control. Entergy’s CIO is responsible for ensuring that the organization’s information technology systems, infrastructure, and applications are designed, implemented, and maintained to provide secure and reliable performance in support of Entergy’s business objectives.
Added
Significant increases in costs associated with capital investments have occurred and could in the future increase financing needs and otherwise adversely affect Entergy, the Utility operating companies, and System Energy’s business, financial position, results of operation, or cash flows.
Removed
The CIO establishes and enforces IT policies, procedures, and controls to mitigate information technology policies, procedures, and controls to mitigate information technology-related risks and provides guidance and support to the business units in the effective use of information technology resources and the management of information technology-related risks.
Added
Changes to state or federal legislation or regulation affecting electric generation, electric transmission, distribution, and related activities could adversely affect Entergy and the Utility operating companies’ financial position, results of operations, or cash flows and their utility businesses.
Removed
By fulfilling these responsibilities across the three lines of defense model, the CIO plays a critical role in ensuring that Entergy’s information technology-related risks are effectively identified, managed, and mitigated, thereby supporting Entergy’s overall risk management and governance framework.
Added
If legislative and regulatory structures evolve in a manner that erodes the Utility operating companies’ exclusive rights to serve their regulated customers, such as through “retail open access” or otherwise, they could lose customers and sales and their results of operations, financial position, or cash flows could be materially affected.
Removed
The CIO’s background includes serving in senior leadership roles, including CIO for multiple global manufacturing companies, serving on the board of directors for a telecommunications company, and consulting leadership positions providing services for numerous large, global organizations.
Added
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.
Removed
In the event of a suspected or actual cybersecurity incident, the Security Incident Response Team (SIRT), which includes the CISO, has primary responsibility for initial identification and evaluation of potential business impacts and escalation of the incident’s severity classification using pre-established criteria with a specified communication matrix and escalation thresholds.
Added
Such loss of sales, due to the methodology used to determine cost of service rates or otherwise, could put upward pressure on rates, possibly resulting in adverse regulatory actions to mitigate such effects on rates.
Removed
The Security Incident Commander, which role is served by rotating leaders in the CISO organization, provides tactical leadership and oversight management at the cross-functional level for the incident. The SIRT remains engaged throughout the incident response lifecycle, including detection and analysis, containment, eradication and recovery, and post-incident remediation, and coordinates with the impacted business functions, if warranted.
Added
Further, the failure of regulatory structures to evolve to accommodate the changing needs and desires of customers with respect to the sourcing and use of electricity also could diminish sales by the operating companies.
Removed
Once a cyber incident is confirmed, the SIRT is responsible for maintaining situational awareness and continuous monitoring of the need for escalation or de-escalation of the incident’s severity classification.
Added
Additionally, any future laws and regulations regarding large-scale data centers, including those relating to energy use, efficiency standards and source of power, could adversely affect Entergy and the Utility operating companies serving these customers, and the effects of such laws and regulations could be heightened by these companies’ increasing exposure to the data center industry.
Removed
As certain escalation thresholds are exceeded, additional levels of management notification are required by the SIRT, including notification of and recurring communication with Entergy’s Incident Response Team, which includes the Chief Executive Officer, the Chief Operating Officer, the CSO, other executive management, and members of the affected business functions.
Added
Entergy and the Utility operating companies cannot predict if or when they may be subject to changes in law, 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.
Removed
Depending upon the facts, analysis, materiality, and anticipated or current impacts, the Chief Executive Officer and the General Counsel will determine the timing and cadence for communication of the cyber incident with the Board of Directors or Audit Committee. 317 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Results of Operations 2024 Compared to 2023 Net Income Net income decreased $77.4 million primarily due to a $159.6 million reduction in income tax expense in 2023 as a result of the resolution of the 2016-2018 IRS audit and a $131.8 million ($99.1 million net-of-tax) charge to reflect the write-off of a previously recorded regulatory asset as a result of an adverse decision in the opportunity sales proceeding in March 2024.
Added
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, and sudden or 296 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy prolonged increases in fuel and purchased power costs could lead to increased customer arrearages or bad debt expenses.
Removed
The decrease was partially offset by write-offs of $78.4 million ($58.8 million net-of-tax) in third quarter 2023 as a result of Entergy Arkansas’s approved motion to forgo recovery of identified costs resulting from the 2013 ANO stator incident, higher retail electric price, higher volume/weather, and higher other income.
Added
The Utility operating companies recover their fuel, purchased power, and associated costs from their customers through rate mechanisms subject to periodic regulatory review and adjustment.
Removed
See Note 3 to the financial statements for further discussion of the resolution of the 2016-2018 IRS audit. See Note 2 to the financial statements for discussion of the opportunity sales proceeding. See Note 8 to the financial statements for further discussion of the ANO stator incident and the approved motion to forgo recovery.
Added
Because regulatory review can result in the disallowance of incurred costs found not to have been prudently incurred or not reflected in rates as permitted by approved rate schedules and accounting rules, including the cost of replacement power purchased when generators experience outages or when planned outages are extended, with the possibility of refunds to ratepayers, there exists some risk to the ultimate recovery of those costs, particularly when there are substantial or sudden increases in such costs, including due to inflation or as a result of changes to governmental policies and programs, including tariffs, tax incentives or tax credits, loans, grants, guarantees, and other subsidies.
Removed
Operating Revenues Following is an analysis of the change in operating revenues comparing 2024 to 2023: Amount (In Millions) 2023 operating revenues $2,646.4 Fuel, rider, and other revenues that do not significantly affect net income (202.1) Retail one-time bill credit (92.3) Volume/weather 37.8 Retail electric price 70.4 2024 operating revenues $2,460.2 Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income.
Added
Regulators also may initiate proceedings to investigate the continued usage or the adequacy and operation of the fuel and purchased power recovery clauses of the Utility operating companies and, therefore, there can be no assurance that existing recovery mechanisms will remain unchanged or in effect at all.
Removed
“Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.
Added
The Utility operating companies’ cash flows can be negatively affected by the time delays between when gas, power, or other commodities are purchased and the ultimate recovery from customers of the costs in rates.
Removed
The retail one-time bill credit represents the disbursement of settlement proceeds in the form of a one-time bill credit provided to Entergy Arkansas’s retail customers during the August 2024 billing cycle through the Grand Gulf credit rider as a result of the System Energy settlement with the APSC.
Added
On occasion, when the level of incurred costs for fuel and purchased power rises dramatically, some of the Utility operating companies may agree to defer recovery of a portion of that period’s fuel and purchased power costs for recovery at a later date, which could increase the near-term working capital and borrowing requirements of those companies.
Removed
There is no effect on net income because Entergy Arkansas previously recorded a regulatory liability for the effects of the System Energy settlement with the APSC. See Note 2 to the financial statements for discussion of the System Energy settlement with the APSC and discussion of the Grand Gulf credit rider.
Added
The Utility operating companies also may experience, and in some instances have experienced, an increase in customer bill arrearages and bad debt expenses due to, among other reasons, increases in fuel and purchased power costs, especially in a rising cost environment, whether due to inflation or increased tariffs and/or in periods of economic decline or hardship.
Removed
The volume/weather variance is primarily due to an increase in residential and industrial usage. The increase in residential usage is primarily due to an increase in customers.
Added
The operation of the Utility operating companies’ transmission system pursuant to the MISO RTO tariff and their participation in the MISO RTO’s wholesale markets may be adversely affected by regulatory or market design changes, as well as liability under, or any future inability to comply with, existing or future regulations or requirements.
Removed
The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily new customers in the technology industry, and an increase in demand from small industrial customers. 318 Table of Contents Entergy Arkansas, LLC and Subsidiaries Management’s Financial Discussion and Analysis The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2024.
Added
The Utility operating companies are subject to economic risks associated with participation in the MISO markets and resource adequacy construct.
Removed
Total electric energy sales for Entergy Arkansas for the years ended December 31, 2024 and 2023 are as follows: 2024 2023 % Change (GWh) Residential 7,658 7,610 1 Commercial 5,583 5,584 — Industrial 10,179 9,095 12 Governmental 185 192 (4) Total retail 23,605 22,481 5 Sales for resale: Associated companies 2,039 2,218 (8) Non-associated companies 4,058 5,777 (30) Total 29,702 30,476 (3) See Note 19 to the financial statements for additional discussion of Entergy Arkansas’s operating revenues.
Added
MISO tariff rules and system conditions, including transmission congestion, could affect the Utility operating companies’ ability to sell capacity, energy, and/or ancillary services in certain regions and/or the economic value of such sales, or increase the cost of serving the Utility operating companies’ respective loads.
Removed
Other Income Statement Variances Other operation and maintenance expenses increased primarily due to: • an increase of $11.2 million in energy efficiency expenses primarily due to the timing of recovery from customers; • the effects of recording a final judgment in first quarter 2023 to resolve claims in the ANO damages case against the DOE related to spent nuclear fuel storage costs.
Added
MISO market rules may change or be interpreted in ways that cause additional cost and risk, including compliance risk. Additionally, each Utility operating company’s continued participation in MISO may be affected by the outcomes of proceedings at its respective retail regulator regarding the realized and expected costs and benefits associated with such Utility operating company’s ongoing participation in MISO.
Removed
The damages awarded included the reimbursement of approximately $10.3 million of spent nuclear fuel storage costs previously recorded as other operation and maintenance expenses.
Added
The Utility operating companies participate in the MISO regional transmission planning process and are subject to risks associated with planning decisions that MISO makes in the exercise of control over the planning of the Utility operating companies’ transmission assets that are under MISO’s functional control.
Removed
See Note 8 to the financial statements for discussion of the spent nuclear fuel litigation; and • an increase of $7.2 million in compensation and benefits costs primarily due to higher healthcare claims activity, including lower prescription drug rebates in 2024 as compared to 2023, and higher incentive-based accruals in 2024 as compared to 2023.
Added
The Utility operating companies pay transmission rates that reflect the cost of transmission projects that the Utility operating companies do not own and are subject to the same increased costs due to factors described herein as potentially impacting other capital projects, which could increase cash or financing needs.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeFor 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.
Biggest changeSee “ Complaints Against System Energy - System Energy Settlement with the LPSC ” in Note 2 to the financial statements for further details of the System Energy global settlement with the LPSC and Note 8 to the financial statements for discussion of the amendment to the Unit Power Sales Agreement.
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.
Complaints Against System Energy 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
Item 1C. Cybersecurity ” in Part I, Item 1C. Entergy and the Registrant Subsidiaries are subject to risks associated with their ability to obtain adequate insurance at acceptable costs.
Added
Item 1C. Cybersecurity Risk Management and Strategy Entergy and the Registrant Subsidiaries maintain a security-risk-management system with defined roles, duties, governance, and accountability. Under this physical- and cyber-risk model, Entergy and the Registrant Subsidiaries streamline security into a centralized program.
Removed
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.
Added
The Chief Security Officer (CSO) is responsible for establishing the security and reliability risk strategy, setting policies, monitoring controls and compliance, providing support activities, and reporting on the security program. The Chief Information Security Officer (CISO) is responsible for establishing the cybersecurity strategy and implementing physical and cyber security systems for the security program.
Removed
The availability of insurance capacity may decrease, and the insurance policies that Entergy or the Registrant Subsidiaries are able to obtain may have higher deductibles, higher premiums, and more restrictive terms and conditions. Further, the insurance policies of Entergy or the Registrant Subsidiaries may not cover all of their potential exposures or actual amounts of losses incurred.
Added
The Chief Information Officer (CIO) is responsible for ensuring that Entergy’s information technology infrastructure is secure and reliable. The Chief Ethics & Compliance Officer works with the CSO to address requirements of external security-related regulations, and where applicable, incorporate them into business policies.
Removed
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.
Added
Management is responsible for identifying and managing risk directly through execution of the security program and compliance with security policies.
Removed
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.
Added
Entergy and the Registrant Subsidiaries’ risk management model addresses compliance with certain regulatory constructs, such as the NERC Reliability Standards, the NRC Code of Federal Regulations, the Payment Card Industry Data Security Standard, and the Health Insurance Portability and Accountability Act, among other regulations.
Removed
The contracts for the construction of certain o f the Utility operating companies’ generation facilities also have included, and in the future may include, price adjustment provisions that, subject to certain limitations, may enable the contractor to increase the contract price to reflect increases in certain costs of constructing the facility.
Added
Entergy and the Registrant Subsidiaries’ risk management model continuously evolves to improve and implement protections, controls, and monitoring to mitigate risks to their part of North America’s electric grid, to protect sensitive information, and to maintain secure business operations.
Removed
These inflationary pressures could impact the ability of Entergy and its subsidiaries to control costs and/or make substantial investments in their businesses, including their ability to recover costs and investments, and to earn their allowed return on equity within frameworks established by their regulators while maintaining affordability of their services for their customers, in addition to having unpredictable effects on Entergy’s customers.
Added
Entergy and the Registrant Subsidiaries manage cybersecurity threats as an enterprise risk with close coordination and information sharing with its federal, state, and local partners.
Removed
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.
Added
Entergy and the Registrant Subsidiaries also engage with local, state, and federal law enforcement agencies on initiatives to share threat information and participate in a wide range of industry collaborations and classified briefings on cybersecurity developments and evolving risks.
Removed
Gas rates charged to retail gas customers are comprised primarily of purchased gas cost charges, which provide no return or profit to Entergy New Orleans, and distribution charges, which provide a return or profit to the utility. Distribution charges recover fixed costs on a volumetric basis and, thus, are affected by the amount of gas sold to customers.
Added
Entergy and the Registrant Subsidiaries maintain access-management controls, including a layered multi-factor authentication process for network and system access, and a defense-in-depth security ecosystem that includes advanced threat detection from independent third parties and federal agencies, security logging and 322 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy monitoring, and independent third-party penetration and vulnerability assessments.
Removed
When purchased gas cost charges increase due to higher gas procurement costs, customer usage may decrease, especially in weaker economic times, resulting in lower distribution charges for Entergy New Orleans, which, given its relatively smaller size, could adversely affect results of operations.
Added
Relevant employees and contractors must complete cybersecurity trainings periodically to heighten security and threat awareness, promote best practices, and meet regulatory requirements.
Removed
Purchased gas cost charges, which comprise most of a customer’s bill and may be adjusted monthly, represent gas commodity costs that Entergy New Orleans recovers from its customers. Entergy New Orleans’s cash flows can be affected by differences between the time when gas is purchased and the time when ultimate recovery from customers occurs.
Added
Additional multi-layered prevention and detection processes and technologies to mitigate and minimize the effects of cybersecurity risks include email security, continuous monitoring, vulnerability scanning, anti-virus and anti-malware software, backups and recovery strategy, network segregation, third-party security, and information protection.
Removed
(Entergy Corporation and System Energy) 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.
Added
Entergy and the Registrant Subsidiaries have incorporated certain cyber-specific response protocols and procedures into their Entergy Incident Management System framework for responding to emergency incidents. This includes the Entergy Incident Response Team Plan, which outlines Entergy’s procedures, steps, and responsibilities for preparing for, detecting, containing, and recovering from an incident.
Removed
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.
Added
The plan details the roles and responsibilities of Entergy’s officers who would be engaged in such a response to an emergency incident, including key questions to be addressed, critical decision points, and sources of key information to support decision-making. Senior management and the Emergency Incident Response Team periodically review and drill on the plan.
Removed
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.
Added
As cybersecurity risks continue to evolve with multiple threat vectors, including artificial intelligence related threats, Entergy and the Registrant Subsidiaries maintain a comprehensive security strategy to keep current with the changing threats.
Removed
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.
Added
To inform this effort, Entergy and the Registrant Subsidiaries utilize the National Institute of Standards and Technology Cybersecurity Framework, which consists of standards, guidelines, and best practices to manage cybersecurity risk across the enterprise. A risk-based approach is used to direct security initiatives to the most significant risks and provide the most value in terms of risk reduction and protection.
Removed
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.
Added
Entergy and the Registrant Subsidiaries use a vendor risk management program to assess and monitor security risks that arise from certain third-party vendors. In addition, Entergy and the Registrant Subsidiaries utilize technology and threat-intelligence services to assess and continuously monitor the cybersecurity risk of key vendors, as identified through the vendor risk management program.
Removed
System Energy agreed to implement certain protocols for providing retail regulators with information regarding rates billed under the Unit Power Sales Agreement.
Added
While Entergy and the Registrant Subsidiaries have experienced cybersecurity incidents, except as otherwise summarized above or discussed elsewhere in this report, the risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected them including their business strategy, results of operations, or financial condition.
Removed
(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.
Added
See “ Risk Factors ” in Part I, Item 1A for a detailed description of the risks related to cybersecurity. Corporate Governance The Board of Directors is responsible for oversight of the identification, management, and mitigation of enterprise-wide risk, including cybersecurity risk.
Removed
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.
Added
The Audit Committee has the primary responsibility for overseeing risk management, including oversight of cybersecurity risk management practices and performance. The Audit Committee generally receives reports at each regular quarterly meeting provided by the CSO, the CISO, the CIO, and the General Auditor on the cybersecurity management program.
Removed
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.
Added
The reports focus on the programs and protocols in place to mitigate cybersecurity risks, led by the CSO.
Removed
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.
Added
Among other things, the reports may include: recent cyber risk and cybersecurity developments; industry engagement activities; legislative and regulatory developments; cyber-risk governance and oversight; selected cyber risk metrics and activities; cyber risk incident response plans and strategies; cybersecurity drills and exercises; assessments by third party experts and Internal Audit; and major projects and initiatives.
Removed
The Independent System Operator that oversees the relevant wholesale power market has imposed, and in the future may continue to impose, mitigation, including price limitations, offer caps and other mechanisms, to address some of the volatility and the potential exercise of market power in that market.
Added
While the Board of Directors and Audit Committee oversee cybersecurity risk management, Entergy’s management is responsible for managing cybersecurity risk. Entergy and the Registrant Subsidiaries’ security-risk-management system, as discussed above, is comprised of a three lines of defense model to enhance risk management efforts and define roles in the security program.
Removed
These types of price limitations and other regulatory mechanisms may have an adverse effect on the profitability of Entergy’s non-utility operations’ generation facilities that sell energy and capacity into the wholesale power markets. The regulatory environment applicable to the electric power industry is subject to changes as a result of restructuring initiatives at both the state and federal levels.
Added
The first line of defense, comprised of business units performing operational functions, including the CISO and CIO, is responsible for identification and management of security and reliability risks directly through design, implementation, and execution of control activities.
Removed
Entergy cannot predict the future design of the wholesale power markets or the ultimate effect that the changing regulatory environment will have on Entergy’s non-utility operations.
Added
The second line of defense, comprised of the CSO, performs and supports security and reliability risk management and 323 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy governs and oversees the execution of security and reliability controls by the first line of defense.
Removed
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.
Added
Ownership of specific security operations may migrate from a business unit in the first line of defense to the second line of defense, as determined to be appropriate by the Chief Security Office.
Removed
Entergy Corporation is a holding company with no material revenue generating operations of its own or material assets other than the stock of its subsidiaries. Accordingly, all of its operations are conducted by its subsidiaries.
Added
The third line of defense, which includes Internal Audit, independent third parties, and certain regulatory constructs, such as the NERC Reliability Standards and the NRC Cyber Rule, provides assurance of selective actions taken by the first and second lines of defense to senior management and the Board of Directors.
Removed
Entergy Corporation has provided, and may continue to provide, capital contributions or debt financing to its subsidiaries, which would reduce the funds available to meet its financial obligations, including making interest and principal payments on outstanding indebtedness, and to pay dividends on Entergy’s common stock.
Added
Entergy’s CSO is responsible for overseeing physical, cyber, and reliability risk, including governance, compliance, and threat intelligence. The CSO’s background includes serving as the Global Lead Business Information Security Officer for a multinational pharmaceutical and biotechnology company, Vice President of Cybersecurity Solutions for an international consulting firm, and an operations manager for a multinational technology company.
Removed
Entergy Corporation’s ability to satisfy its financial obligations, including the payment of interest and principal on its outstanding debt, and to pay dividends on its common stock depends on the payment to it of dividends or distributions by its subsidiaries.
Added
The CSO is also a former intelligence officer in the U.S. Marine Corps, with experience in the Fleet Marine Force, Joint Staff J-2/Defense Intelligence Agency, and Headquarters Marine Corps Command, Control, Communications, and Computers (C4I). The CSO participated in numerous exercises and crisis operations during his time in the military.
Removed
The subsidiaries of Entergy Corporation are separate and distinct legal entities and have no obligation, contingent or otherwise, to pay any dividends or make distributions to Entergy Corporation.
Added
The CSO is a member of the Information Systems Audit and Control Association and a certified Information Privacy Manager from the International Association of Privacy Professionals. The CSO also completed the Harvard Kennedy School Executive Education Program in Cybersecurity and the FBI Domestic Security Executive Academy.
Removed
The ability of such subsidiaries to make payments of dividends or distributions to Entergy Corporation depends on their results of operations and cash flows and other items affecting retained earnings, and on any applicable legal, regulatory, or contractual limitations on subsidiaries’ ability to pay such dividends or distributions.
Added
Entergy’s CISO is responsible for enterprise strategic and operational cybersecurity, physical security systems, and regulatory compliance. The CISO oversees investments in tools, resources, and processes that allow for the continuous improvement and maturity of Entergy’s cybersecurity posture. The CISO has expertise spanning more than 25 years in the realm of information technology, information security, and cyber/physical security management.
Removed
Prior to providing funds to Entergy Corporation, such subsidiaries have financial and regulatory obligations that must be satisfied, including among others, debt service and, in the case of Entergy Utility Holding Company, LLC and Entergy Texas, dividends and distributions on preferred securities.
Added
The CISO’s background includes serving as the Vice President and Chief Information Security Officer for an electric utility with responsibility for enterprise cybersecurity covering corporate, electric, nuclear, and gas operations. Additionally, the CISO served as the Chief Security Officer for the Electric Reliability Council of Texas with overall responsibility for its cybersecurity, physical security, and emergency management programs.
Removed
Any distributions from the Registrant Subsidiaries other than Entergy Texas and System Energy are paid directly to Entergy Utility Holding Company, LLC and are therefore subject to prior payment of distributions on its preferred securities. The hazardous activities associated with power generation could adversely impact our results of operations and financial condition.
Added
Her previous experience includes multiple technical, managerial, and strategic roles within industries ranging from energy, telecommunication, software development, and cybersecurity consulting. The CISO is a Certified Information Systems Security Professional, Certified Information Security Manager, and Certified in Risk and Information Systems Control.
Removed
Power generation involves hazardous activities, including acquiring, transporting and unloading fuel, operating large pieces of rotating equipment and delivering electricity to transmission and distribution systems.
Added
Entergy’s CIO is responsible for ensuring that the organization’s information technology systems, infrastructure, and applications are designed, implemented, and maintained to provide secure and reliable performance in support of Entergy’s business objectives.
Removed
In addition to natural risks, such as earthquakes, floods, lightning, hurricanes and wind, hazards, such as fire, explosion, collapse, and machinery failure, are inherent risks in our operations which may occur as a result of inadequate internal processes, technological flaws, human error, or actions of third parties or other external events.
Added
The CIO establishes and enforces IT policies, procedures, and controls to mitigate information technology policies, procedures, and controls to mitigate information technology-related risks and provides guidance and support to the business units in the effective use of information technology resources and the management of information technology-related risks.
Removed
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.
Added
By fulfilling these responsibilities across the three lines of defense model, the CIO plays a critical role in ensuring that Entergy’s information technology-related risks are effectively identified, managed, and mitigated, thereby supporting Entergy’s overall risk management and governance framework.
Removed
The occurrence of any one of these events may result in our being named as a defendant in lawsuits asserting claims for substantial damages, environmental cleanup costs, personal injury, and fines and/or penalties and may adversely affect our reputation.
Added
The CIO’s background includes serving in senior leadership roles, including CIO for multiple global manufacturing companies, serving on the board of directors for a telecommunications company, and consulting leadership positions providing services for numerous large, global organizations.
Added
In the event of a suspected or actual cybersecurity incident, the Security Incident Response Team (SIRT), which includes the CISO, has primary responsibility for initial identification and evaluation of potential business impacts and escalation of the incident’s severity classification using pre-established criteria with a specified communication matrix and escalation thresholds.
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The Security Incident Commander, which role is served by a leader in the CISO organization, provides tactical leadership and oversight management at the cross-functional level for the incident.
Added
The SIRT remains engaged throughout the incident response lifecycle, including detection and analysis, containment, eradication and recovery, and post-incident remediation, and coordinates with the impacted 324 Table of Contents Part I Item 1A, 1B, and 1C Entergy Corporation, Utility operating companies, and System Energy business functions, if warranted.
Added
Once a cyber incident is confirmed, the SIRT is responsible for maintaining situational awareness and continuous monitoring of the need for escalation or de-escalation of the incident’s severity classification.
Added
As certain escalation thresholds are exceeded, additional levels of management notification are required by the SIRT, including notification of and recurring communication with Entergy’s Incident Response Team, which includes the Chief Executive Officer, the Chief Operating Officer, the CSO, other executive management, and members of the affected business functions.
Added
Depending upon the facts, analysis, materiality, and anticipated or current impacts, the Chief Executive Officer and the General Counsel will determine the timing and cadence for communication of the cyber incident with the Board of Directors or Audit Committee. 325 Table of Contents ENTERGY ARKANSAS, LLC AND SUBSIDIARIES MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS Winter Storm Fern See the “ Winter Storm Fern ” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern.

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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 2024 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 2025 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 change(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.
Biggest changeDinelli (a) 56 Executive Vice President and Chief Nuclear Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy 2025-Present Director of System Energy 2025-Present Chief Operating Officer, Nuclear Operations of Entergy Services 2022-2025 Vice President, Independent Oversight, Nuclear Operations of Entergy Services 2022 Vice President, Site of Entergy Operations, Inc. 2017-2022 Daniel T.
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.
Marsh (a) 54 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.
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
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, 2025. 475 Table of Contents PART II
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.
Jackson (a) 59 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 (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.
Collins (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.
Collins (a) 62 Senior Vice President and Chief Human Resources Officer of Entergy Corporation 2020-Present Kimberly Cook-Nelson (a) 53 Executive Vice President and Chief Operating Officer of Entergy Corporation 2025-Present Director of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy Texas, and System Energy 2025-Present Executive Vice President and Chief Nuclear Officer of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy 2022-2025 Director of System Energy 2022-2025 Chief Operating Officer, Nuclear Operations, Entergy Services 2021-2022 Vice President, System Planning of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas 2019-2021 John C.
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.
Fontan (a) 52 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 473 Table of Contents Name Age Position Period Marcus V.
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.
Hudson, III 55 Chief External Affairs Officer of Entergy Corporation 2024-Present Senior Vice President, Federal Policy, Regulatory and Government Affairs of Entergy Services 2022-2024 President, Entergy Charitable Foundation 2022-Present President and Chief Executive Officer, Nicor Gas 2020-2022 Anastasia Minor 56 Chief Transformation Officer of Entergy Services 2023-Present Senior Vice President, Strategy and Financial Planning of Entergy Services 2022-2023 Vice President, Finance Business Partners of Entergy Services 2017-2022 Reginald T.
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.
Brown 64 Executive Legal Advisor to the Chief Executive Officer of Entergy Corporation 2025-Present Executive Vice President and General Counsel of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Entergy 2013-2025 Jason Chapman (a) 55 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.
Added
Falstad (a) 65 Senior Vice President, General Counsel and Secretary of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Entergy 2025-Present Vice President, Deputy General Counsel and Secretary of Entergy Services 2016-2025 474 Table of Contents Name Age Position Period John O.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn 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.
Biggest changeIn addition, in the first quarter 2025, Entergy withheld 61,042 shares of its common stock at $78.79 per share, 1,300 shares of its common stock at $81.31 per share, 213,368 shares of its common stock at $81.99 per share, 171,525 shares of its common stock at $82.52 per share, and 1,118 shares of its common stock at $82.82 per share to pay income taxes due upon vesting of restricted stock granted and payout of performance units as part of its long-term incentive program.
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.
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) 10/01/2025 - 10/31/2025 — $— — $350,052,918 11/01/2025 - 11/30/2025 — $— — $350,052,918 12/01/2025 - 12/31/2025 — $— — $350,052,918 Total — $— — In accordance with Entergy’s stock-based compensation plans, Entergy periodically grants stock options to key employees, which may be exercised to obtain shares of Entergy’s common stock.
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.
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 Exchange LLC and the NYSE Texas, Inc. under the ticker symbol ETR. As of January 31, 2026, there were 17,784 stockholders of record of Entergy Corporation.
(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.
(1) See Note 12 to the financial statements for additional discussion of the stock-based compensation plans.

Other ETR 10-K year-over-year comparisons