ETR 10-Q Quarter ended June 30, 2025

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Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory authorities, and governmental agencies in the ordinary course of business.  While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report.  Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein.

Vidalia Purchased Power Agreement

See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement.

Spent Nuclear Fuel Litigation

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. The following is an update to that discussion.

As discussed in the Form 10-K, in October 2024 the U.S. Court of Federal Claims issued a final judgment in the amount of $ 7 million in favor of Holtec Palisades, LLC (previously Entergy Nuclear Palisades) and against the DOE in the final round Palisades damages case. Holtec, as the current owner, received payment from the U.S. Treasury in March 2025 and subsequently transferred the $ 7 million judgment to Entergy. The effect in 2024 of recording the judgment was a reduction to asset write-offs, impairments, and related charges (credits). The damages awarded included $ 4 million related to costs previously recorded as plant and $ 3 million related to costs previously recorded as other operation and maintenance expenses.

Nuclear Insurance

See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants.

Non-Nuclear Property Insurance

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program.

Employment and Labor-related Proceedings

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings.

Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas)

See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation.

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Grand Gulf-Related Agreements

See Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements, including the Unit Power Sales Agreement, the Availability Agreement, and the Reallocation Agreement.

Exclusivity Agreement with Major Vendor

Entergy entered into an exclusivity agreement with a major vendor to manufacture power island equipment (PIE) and combustion turbines (CT) for combustion turbine generator set frames larger than 400 MWs. The agreement guarantees Entergy one manufacturing slot per quarter for the shorter of a five-year period or until Entergy fulfills its minimum commitment. The agreement commits Entergy to a minimum order of 15 sets of PIE and two CTs during that time period. The commitments are fully transferable to any of the Utility operating companies.

Cancellation or failure to purchase the minimum commitment amounts will result in a charge. If any of the Utility operating companies purchases any PIEs or CTs within the scope of the agreement from another supplier (except as permitted under the agreement), then the vendor has the right to terminate all or a portion of the agreement. In the event of such termination, the Utility operating company would then be obligated to pay 50% of the base price for each PIE or CT not yet ordered. The agreement does not establish final pricing and delivery dates of purchases that will go towards meeting the commitments under the agreement. Such terms shall be agreed to in separate agreements.

Regulatory Assets and Regulatory Liabilities

See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries.  The following are updates to that discussion.

Fuel and purchased power cost recovery

Entergy Arkansas

Energy Cost Recovery Rider

In March 2025, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $ 0.00882 per kWh to $ 0.01333 per kWh. The annual redetermination included a credit related to the remaining balance due to retail customers from the System Energy settlement with the APSC, plus carrying charges and interest. See “ Retail Rate Proceedings - Filings with the APSC (Entergy Arkansas) - Retail Rates - Grand Gulf Credit Rider” below for further discussion. The primary reason for the rate increase is an adjustment to account for projected increases in natural gas prices in 2025. This adjustment is expected to reduce the rate change that will be reflected in its 2026 energy cost rate redetermination. The redetermined rate of $ 0.01333 per kWh became effective with the first billing cycle in April 2025 through the normal operation of the tariff.

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Entergy Louisiana

As discussed in the Form 10-K, in January 2023 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from 2021 through 2022. In April 2025 the LPSC staff issued its audit report (for Entergy Louisiana’s gas operations), which included several prospective recommendations but no financial disallowances. The LPSC accepted the report in June 2025.

Entergy Texas

As discussed in the Form 10-K, in September 2024, Entergy Texas filed an application with the PUCT to reconcile its fuel and purchased power costs for the period from April 2022 through March 2024. During the reconciliation period, Entergy Texas incurred approximately $ 1.6 billion in eligible fuel and purchased power expenses to generate and purchase electricity to serve its customers, net of certain revenues credited to such expenses and other adjustments. Entergy Texas’s cumulative under-recovery balance for the reconciliation period was approximately $ 30 million, including interest, which Entergy Texas requested authority to carry over as part of the cumulative fuel balance for the subsequent reconciliation period beginning April 2024. In November 2024 the PUCT referred the proceeding to the State Office of Administrative Hearings. In March 2025, Texas Industrial Energy Consumers, an intervenor, filed testimony regarding the recovery of capacity costs for a certain power purchase agreement, arguing the capacity costs should be imputed and treated as non-reconcilable fuel expense, recovered in Entergy Texas’s base rates. In April 2025 the PUCT staff filed testimony and later in April 2025, Entergy Texas filed rebuttal testimony. In May 2025, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a request for a paper hearing and to cancel the oral hearing on the merits previously scheduled for later in May 2025. In June 2025, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a joint motion to abate the proceeding to give the parties to the proceeding additional time to finalize a settlement.

Retail Rate Proceedings

See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that discussion.

Filings with the APSC (Entergy Arkansas)

Retail Rates

2025 Formula Rate Plan Filing

In July 2025, Entergy Arkansas filed with the APSC its 2025 formula rate plan filing to set its formula rate for the 2026 calendar year.  The filing contained an evaluation of Entergy Arkansas’s earnings for the 2026 projected year and a netting adjustment for the 2024 historical year.  The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2026 projected year was 8.45 % resulting in a revenue deficiency of $ 68.9 million.  The earned rate of return on common equity for the 2024 historical year was 7.71 % resulting in a $ 48.8 million netting adjustment.  The total proposed revenue change for the 2026 projected year and 2024 historical year netting adjustment is $ 117.7 million.   By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint.  Because Entergy Arkansas’s revenue requirement in this filing exceeded the constraint, the resulting increase was limited to $ 92.3 million. Entergy Arkansas proposed a procedural schedule that includes a hearing in November 2025 and requests an APSC order in December 2025.

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Grand Gulf Credit Rider

As discussed in the Form 10-K, in June 2024, Entergy Arkansas filed with the APSC a tariff to provide retail customers a credit resulting from the terms of the settlement agreement between Entergy Arkansas, System Energy, additional named Entergy parties, and the APSC pertaining to System Energy’s billings for wholesale sales of energy and capacity from the Grand Gulf nuclear plant. See “ Complaints Against System Energy - System Energy Settlement with the APSC ” in Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the APSC. In July 2024 the APSC approved the tariff, under which Entergy Arkansas would refund to retail customers a total of $ 100.6 million. Entergy Arkansas refunded $ 92.3 million of the total through one-time bill credits under the Grand Gulf credit rider during the August 2024 billing cycle. In March 2025, Entergy Arkansas included the remaining balance as a credit to retail customers in its energy cost recovery rider rate redetermination filing. See further discussion within " Regulatory Assets and Regulatory Liabilities - Fuel and purchased power cost recovery - Entergy Arkansas - Energy Cost Recovery Rider" above. In April 2025 the APSC approved Entergy Arkansas’s proposal to include the remaining balance in its energy cost recovery rider effective with the first billing cycle of April 2025 and the withdrawal of the Grand Gulf credit rider after all credits had been issued. Credits to retail customers were completed in second quarter 2025, and the Grand Gulf credit rider was subsequently withdrawn.

Filings with the LPSC (Entergy Louisiana)

Retail Rates - Electric

2023 Formula Rate Plan Filing

As discussed in the Form 10-K, in August 2024, pursuant to the global stipulated settlement agreement approved by the LPSC also in August 2024, Entergy Louisiana filed its formula rate plan evaluation report for its 2023 calendar year operations. Consistent with the global stipulated settlement agreement, the filing reflected a 9.7 % allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the 2023 test year, however, the bandwidth provisions of the formula rate plan were temporarily suspended and, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana implemented the September 2024 formula rate plan rate adjustments effective with the first billing cycle of September 2024. In January 2025, Entergy Louisiana and the LPSC filed a joint report indicating that no disputed issues remained in the proceeding and requesting that the LPSC issue an order accepting Entergy Louisiana’s evaluation report and, ultimately, resolving this matter. In March 2025 the LPSC issued an order accepting the evaluation report.

In December 2024, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed an interim rate adjustment for the 2023 test year reflecting the return of $ 25.1 million of refunds from the System Energy settlement with the LPSC to customers from January through August 2025. In February 2025, pursuant to the terms of the global stipulated settlement agreement, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting the divestiture of Entergy Louisiana’s share of Grand Gulf capacity and energy, which was effective as of January 1, 2025. The second interim rate adjustment also reflected a revenue increase of $ 17.8 million for the recovery of Hurricane Francine costs as approved by the LPSC (on an interim basis). The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the Hurricane Francine proceeding in “ Storm Cost Recovery Filings with Retail Regulators – Entergy Louisiana – Hurricane Francine” below. See Note 8 to the financial statements in the Form 10-K for discussion of Entergy Louisiana’s divestiture from the Unit Power Sales Agreement.

2024 Formula Rate Plan Filing

In May 2025, Entergy Louisiana filed its formula rate plan evaluation report for its 2024 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, the filing reflected a 9.7 % allowed return on common equity with a bandwidth of 40 basis points above and below the

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midpoint. For the test year 2024, however, any earnings above the allowed return on common equity are to be returned to customers through a credit, pursuant to the terms of the global stipulated settlement agreement. The 2024 test year evaluation produced an earned return on common equity of 9.98 %, which is within the approved formula rate plan bandwidth, but above the allowed return on common equity, resulting in a customer credit of $ 31.9 million to be returned to customers during September and October 2025.

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

As noted above, the 2024 evaluation report included the effects of the change in Louisiana state tax law that reduced the corporate income tax rate to a flat 5.5 % (from the then-current highest marginal rate of 7.5 %) effective January 1, 2025. As such, the 2024 evaluation report reflected the calculation of current and deferred income tax expenses as well as the revaluation of accumulated deferred income taxes based on the income tax laws currently in effect. The 2024 evaluation report proposes that the rate effects associated with the revaluation of accumulated deferred income taxes, including the collection of any net accumulated deferred income tax deficiency and any related effects on rate base, should be reflected in the tax adjustment mechanism consistent with the treatment of similar Tax Cuts and Jobs Act and prior state tax change-related impacts. The effects of the change in tax law on Entergy Louisiana’s authorized return on rate base are also reflected in the 2024 evaluation report consistent with the treatment cited above, including a credit in the extraordinary cost change mechanism for the prospective change in Entergy Louisiana’s authorized return and a credit within the tax adjustment mechanism for over-collection of income tax expense through August 2025.

Additional Generation and Transmission Resources

As discussed in the Form 10-K, in October 2024, Entergy Louisiana filed an application with the LPSC seeking approval of a variety of generation and transmission resources proposed in connection with establishing service to a new data center to be developed by a subsidiary of Meta Platforms, Inc. in north Louisiana, for which an electric service agreement has been executed. The filing requests LPSC certification of three new combined cycle combustion turbine generation resources totaling 2,262 MW, each of which will be enabled for future carbon capture and storage, a new 500 kV transmission line, and 500 kV substation upgrades. The application also requests approval to implement a corporate sustainability rider applicable to the new customer. The corporate sustainability rider contemplates the new customer contributing to the costs of the future addition of 1,500 MW of new solar and energy storage resources, agreements involving carbon capture and storage at Entergy Louisiana’s existing Lake Charles Power Station, and potential future wind and nuclear resources. Entergy Louisiana anticipates funding the incremental cost to serve the customer through direct financial contributions from the customer and the revenues it expects to earn under the electric service agreement. The electric service agreement also contains provisions for termination payments that will help ensure that there is no harm to Entergy Louisiana and its customers in the event of early termination. A directive was issued at the LPSC’s November 2024 meeting for the matter to be decided by October 2025. In February 2025 intervenors filed a motion asking the LPSC to deny Entergy Louisiana’s requested exemption from the LPSC’s order addressing competitive solicitation procedures and further asking the LPSC to dismiss the application. The ALJ issued an order denying the motion to dismiss the application and deferring the LPSC’s consideration of the motion regarding the competitive solicitation procedures until the hearing. In March 2025 the same intervenors filed a motion requesting the LPSC to require the customer and its parent company to be joined as parties to the proceeding or dismiss the application. In April 2025 the ALJ issued an order denying the March 2025 motion, and the moving parties filed a motion asking the LPSC to review and reverse the ALJ’s decision.

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

In April 2025 and May 2025 the LPSC staff and certain intervenors each filed their direct testimony and cross-answering testimony, respectively. The LPSC staff’s testimony discussed the significant projected benefits associated with the data center project; however, both the LPSC staff and such intervenors also identified purported risks associated with constructing the requested resources based on the terms and conditions under which the customer would be taking service. Both the LPSC staff and such intervenors also recommended that the LPSC impose certain conditions on its approval which, if adopted, would support approval of Entergy Louisiana’s application. The LPSC staff’s recommendations included a condition that would require, under specified circumstances, certain sharing of net revenues from service to the project with Entergy Louisiana’s other customers. The LPSC staff also recommended that the LPSC deny approval of the corporate sustainability rider terms providing for the customer to supply funding toward the cost of installing carbon capture and storage infrastructure at Entergy Louisiana’s Lake Charles Power Station. The Louisiana Energy Users Group and other intervenors recommended that the LPSC require various changes to the terms of the electric service agreement with the customer that would shift additional risk and cost to the customer rather than Entergy Louisiana’s broader customer base. Certain intervenors also challenged approval on the basis that Entergy Louisiana did not conduct a request for proposals to procure the proposed generation resources to serve the customer’s project; these intervenors also advocated that Entergy Louisiana be required to procure more renewable generation and evaluate transmission alternatives rather than proceeding with development of all of the proposed new generation resources. In May 2025, Entergy Louisiana filed its rebuttal testimony responding to the direct and cross-answering testimony of the LPSC staff and intervenors. The rebuttal testimony expressed support for or no opposition to the LPSC’s adoption of certain of the proposed recommendations and identified why other proposed recommendations should not be adopted. In addition, the rebuttal testimony stated that the negotiations related to the increase in the load amount for the customer’s project had concluded and that a rider to the electric service agreement reflecting this increase had been executed. In advance of the July 2025 hearing, Entergy Louisiana reached a settlement agreement with the LPSC staff and three separate intervenors. The hearing concluded and the matter is currently under consideration by the ALJ.

COVID-19 Orders

As discussed in the Form 10-K, in April 2020 the LPSC issued an order authorizing utilities to record as a regulatory asset expenses incurred from the suspension of disconnections and collection of late fees imposed by LPSC orders associated with the COVID-19 pandemic. In April 2023, Entergy Louisiana filed an application proposing to utilize approximately $ 1.6 billion in certain low interest debt to generate earnings to apply toward the reduction of the COVID-19 regulatory asset, as well as to conduct additional outside right-of-way vegetation management activities and fund the minor storm reserve account. In that filing, Entergy Louisiana proposed to delay repayment of certain shorter-term first mortgage bonds that were issued to finance storm restoration costs until the costs could be securitized, and to invest the funds that otherwise would be used to repay those bonds in the money pool to take advantage of the spread between prevailing interest rates on investments in the money pool and the interest rates on the bonds. The LPSC approved Entergy Louisiana’s requested relief in June 2023. In November 2024, Entergy Louisiana submitted a filing to the LPSC requesting that the LPSC review Entergy Louisiana’s computation of the COVID-19 regulatory asset as well as Entergy Louisiana’s proposal to offset the regulatory asset against the net interest earned on the short-term debt funds, resulting in no increased costs to customers. At the time of the filing, Entergy Louisiana had a regulatory asset of $ 47.8 million for costs associated

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with the COVID-19 pandemic. As of June 30, 2025, Entergy Louisiana had a regulatory liability of $ 48.9 million for the deferred earnings related to the approximately $ 1.6 billion in low interest debt, which had been fully repaid by August 2024. In granting Entergy Louisiana’s requested relief in June 2023, the LPSC ordered that any amount of earnings exceeding the amount of the COVID-19 regulatory asset be transferred to Entergy Louisiana’s storm reserve escrow account. In May 2025 the LPSC staff filed direct testimony finding that Entergy Louisiana had complied with the relevant orders and recommending approval of the requested treatment. In June 2025, Entergy Louisiana and the LPSC staff filed a joint motion requesting a hearing for the admission of an uncontested stipulated settlement agreement in the matter. A settlement hearing took place in July 2025 and Entergy Louisiana expects the settlement to be considered at an upcoming meeting of the LPSC. The settlement terms provide for LPSC approval of Entergy Louisiana’s calculation of the COVID-19 regulatory assets and Entergy Louisiana’s proposal to offset the regulatory asset as described above and as proposed in Entergy Louisiana’s November 2024 filing.

Filings with the MPSC (Entergy Mississippi)

Retail Rates

2025 Formula Rate Plan Filing

In February 2025, Entergy Mississippi submitted its formula rate plan 2025 test year filing and 2024 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2024 calendar year to be within the formula rate plan bandwidth and projected earned return for the 2025 calendar year also to be within the formula rate plan bandwidth. The 2025 test year filing showed an earned return on rate base of 7.64 % and reflected no change in formula rate plan revenues. The 2024 look-back filing compared actual 2024 results to the approved benchmark return on rate base and reflected no change in formula rate plan revenues, although Entergy Mississippi proposed to adjust interim rates by $ 135 thousand to reflect two outside-the-bandwidth changes: (1) the completion of Entergy Mississippi’s return to customers of credits under its restructuring credit rider; and (2) a true-up of demand side management costs.

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

Interim Facilities Rate Adjustments

In May 2024, Entergy Mississippi received approval from the MPSC for formula rate plan revisions that were necessary for Entergy Mississippi to comply with state legislation passed in January 2024. The legislation allows Entergy Mississippi to make interim rate adjustments to recover the non-fuel related annual ownership cost of certain facilities that directly or indirectly provide service to customers who own certain data processing center projects as specified in the legislation. Entergy Mississippi filed the first of its annual interim facilities rate adjustment reports in May 2024 to recover approximately $ 8.7 million of these costs over a six-month period with rates effective beginning in July 2024. Entergy Mississippi filed its second interim facilities rate adjustment report in November 2024 to recover approximately $ 46.7 million of these costs over a 12-month period with rates effective beginning in January 2025. In February 2025, Entergy Mississippi filed a true-up interim facilities rate adjustment report to the initial annual interim facilities rate adjustment report filed in May 2024, reflecting the recovery of an

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additional approximately $ 1.0 million of costs over a 12-month period with rates effective with the first billing cycle of April 2025.

Filings with the City Council (Entergy New Orleans)

Retail Rates

2025 Formula Rate Plan Filing

In April 2025, Entergy New Orleans submitted to the City Council its formula rate plan 2024 test year filing. The 2024 evaluation report produced an electric earned return on equity of 10.98 % compared to the authorized return on equity of 9.35 %. Without adjustments, this would result in a decrease in electric rates of $ 13.8 million. The decrease in electric rates is driven by the realignment of regulatory liabilities into the formula from a separate rate mechanism, partially offset by the cost of known and measurable electric capital additions. The filing also commences the previously authorized recovery of certain regulatory costs and requests a revenue-neutral recovery to offset a proposed reduction in bill payment late fees. Taking into account these proposed adjustments, the filing presents a decrease in authorized electric revenues of $ 8.6 million. The City Council’s advisors issued their report in July 2025 seeking a reduction in Entergy New Orleans’s requested electric formula rate plan revenues of approximately $ 7.2 million due to certain proposed cost realignments and disallowances, of which $ 4.1 million is associated with Entergy New Orleans’s proposed implementation, on a revenue neutral basis, of a proposed reduction in customer late fees. The City Council’s advisors also proposed rate mitigation in the amount of $ 4.4 million through offsets to the formula rate plan funded by certain regulatory liabilities. The City Council’s advisors’ report began a 35-day period to resolve any disputes among the parties regarding the formula rate plan. For any disputed rate adjustments, the City Council would set a procedural schedule to resolve. Resulting rates will be effective with the first billing cycle of September 2025 pursuant to the formula rate plan tariff.

Filings with the PUCT and Texas Cities (Entergy Texas)

Retail Rates

Distribution Cost Recovery Factor (DCRF) Rider

In April 2025, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $ 77.8 million annually, or $ 29.3 million in incremental annual revenues beyond Entergy Texas’s then-effective DCRF rider based on its capital invested in distribution between July 1, 2024 and December 31, 2024, including distribution-related restoration costs associated with Hurricane Beryl. In June 2025 the PUCT approved the DCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective on June 25, 2025.

Transmission Cost Recovery Factor (TCRF) Rider

As discussed in the Form 10-K, in October 2024, Entergy Texas filed with the PUCT a request to amend its TCRF rider, which was previously reset to zero in June 2023 as a result of the 2022 base rate case. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $ 9.7 million annually based on its capital invested in transmission between January 1, 2022 and June 30, 2024 and changes in other transmission charges. In April 2025 the PUCT approved the TCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after April 7, 2025.

Entergy Arkansas Opportunity Sales Proceeding

As discussed in the Form 10-K, in September 2020, Entergy Arkansas filed a complaint in the U.S. District Court for the Eastern District of Arkansas challenging the APSC’s denial of recovery of $ 135 million of payments

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to other Utility operating companies in December 2018 relating to off-system sales of electricity from 2002-2009, as ordered by the FERC. The complaint also involved a challenge to the $ 13.7 million, plus interest, of related refunds ordered by the APSC and paid by Entergy Arkansas in August 2020. The trial was held in February 2023.

In March 2024 the U.S. District Court for the Eastern District of Arkansas issued a judgment in favor of the APSC and against Entergy Arkansas. In March 2024 Entergy Arkansas filed a notice of appeal and a motion to expedite oral arguments with the United States Court of Appeals for the Eighth Circuit and the court granted the motion to expedite. As a result of the adverse decision by the U.S. District Court for the Eastern District of Arkansas, Entergy Arkansas concluded that it could no longer support the recognition of its $ 131.8 million regulatory asset reflecting the previously-expected recovery of a portion of the costs at issue in the opportunity sales proceeding and recorded a $ 131.8 million ($ 99.1 million net-of-tax) charge to earnings in first quarter 2024. In December 2024 the United States Court of Appeals for the Eighth Circuit affirmed the decision of the U.S. District Court for the Eastern District of Arkansas, and Entergy Arkansas filed a petition for rehearing en banc. In January 2025 the United States Court of Appeals for the Eighth Circuit denied Entergy Arkansas’s petition. In April 2025, Entergy Arkansas filed a petition for certiorari with the United States Supreme Court. In June 2025 the United States Supreme Court denied Entergy Arkansas’s petition for certiorari.

MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding

See Note 2 to the financial statements in the Form 10-K for discussion of the MSS-4 replacement tariff net operating loss carryforward proceeding.

The MSS-4 replacement tariff, a tariff governing the sales of energy and capacity among the Utility operating companies, includes protocols that provide for the disclosure of cost inputs, an opportunity for informal discovery procedures, and a challenge process. In April 2025, pursuant to such protocols, the City Council filed with the FERC a formal challenge relating to Entergy Services’ inclusion and allocation of net operating loss carryforward accumulated deferred income taxes in the MSS-4 replacement tariff rates charged to Entergy New Orleans’s monthly bills for calendar year 2023. In May 2025, Entergy Services filed a response to the formal challenge and is awaiting a response from the FERC.

Complaints Against System Energy

See Note 2 to the financial statements in the Form 10-K for information regarding pending complaints against System Energy and the settlements approved by the FERC that resolved all significant aspects of these complaints. The following are updates to that discussion.

Grand Gulf Sale-leaseback Renewal Complaint and Uncertain Tax Position Rate Base Issue

As discussed in the Form 10-K, in February 2023, System Energy submitted a tariff compliance filing with the FERC to clarify that, consistent with the releases provided in the June 2022 MPSC settlement, Entergy Mississippi would continue to be charged for its allocation of the sale-leaseback renewal costs under the Unit Power Sales Agreement. In March 2023 the MPSC filed a protest to System Energy’s tariff compliance filing. The MPSC argued that the settlement did not specifically address post-settlement sale-leaseback renewal costs and that the sale-leaseback renewal costs may not be recovered under the Unit Power Sales Agreement. In February 2025, System Energy and the MPSC resolved their dispute concerning the sale-leaseback renewal costs. As a result, the MPSC withdrew its protest at the FERC on System Energy’s tariff compliance filing. Entergy Mississippi will continue to pay the allocated sale-leaseback renewal costs of approximately $ 5.7 million annually and there are no refunds due for prior periods. In March 2025, System Energy filed a status report with the FERC explaining that the dispute is resolved. In April 2025 the FERC accepted System Energy’s tariff compliance filing.

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System Energy Settlement with the LPSC

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

Storm Cost Recovery Filings with Retail Regulators

See Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings. The following is an update to that discussion.

Entergy Louisiana

Hurricane Francine

In September 2024, Hurricane Francine caused damage to the areas served by Entergy Louisiana. The storm resulted in widespread power outages, primarily due to damage to distribution infrastructure as a result of strong winds and heavy rain, and the loss of sales during the power outages.

In December 2024, and subsequently amended in an errata filed in February 2025, Entergy Louisiana submitted an application to the LPSC seeking a determination that approximately $ 183.6 million in storm restoration costs associated with Hurricane Francine were reasonable and necessary and, therefore, eligible for recovery from customers, as well as approval to recover approximately $ 3.6 million in certain carrying costs from customers. In February 2025, Entergy Louisiana filed a second interim rate adjustment for the 2023 test year reflecting a revenue increase of $ 17.8 million from funds approved by the LPSC (on an interim basis) for Hurricane Francine recovery costs. The second interim rate adjustment was implemented with the first billing cycle of March 2025. See further discussion of the 2023 formula rate plan filing above. Also in February 2025, Entergy Louisiana withdrew $ 33.5 million from its funded storm reserves. In June 2025 the LPSC staff filed direct testimony. The LPSC staff recommends approval of Entergy Louisiana’s as-requested storm restoration costs with the exception of approximately $ 10.6 million, comprised primarily of estimates of mutual assistance invoices that have not yet been received at the time of filing and that ultimately exceeded the actual amounts invoiced, as well as certain incentive compensation, and $ 1.8 million associated with certain carrying costs. Entergy Louisiana’s rebuttal testimony is due in August 2025 and a hearing is scheduled for November 2025.

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Common Stock

Earnings per Share

Historical share and share-based data presented in the accompanying financial statements has been retroactively adjusted to reflect the two -for-one forward stock split of Entergy Corporation common stock effective December 12, 2024. See Note 7 to the financial statements in the Form 10-K for discussion of the stock split.

The following tables present Entergy’s basic and diluted earnings per share calculations for the three and six months ended June 30, 2025 and 2024, included on the consolidated income statements:

			For the Three Months Ended June 30,
			2025												2024
			(Dollars In Thousands, Except Per Share Data; Shares in Millions)
									$/share												$/share
Consolidated net income			$ 471,954												$ 51,732
Less: Preferred dividend requirements of subsidiaries and noncontrolling interests			4,024												2,810
Net income attributable to Entergy Corporation			$ 467,930												$ 48,922
Basic shares and earnings per average common share			439.2						$ 1.07						427.2						$ 0.11
Average dilutive effect of:
Stock options			0.9						—						0.6						—
Other equity plans			1.2						—						1.0						—
Equity forwards			4.4						( 0.02 )						—						—
Diluted shares and earnings per average common share			445.7						$ 1.05						428.8						$ 0.11

			For the Six Months Ended June 30,
			2025												2024
			(Dollars In Thousands, Except Per Share Data; Shares in Millions)
									$/share												$/share
Consolidated net income			$ 834,376												$ 128,268
Less: Preferred dividend requirements of subsidiaries and noncontrolling interests			5,686												4,065
Net income attributable to Entergy Corporation			$ 828,690												$ 124,203
Basic shares and earnings per average common share			434.8						$ 1.91						426.8						$ 0.29
Average dilutive effect of:
Stock options			1.0						—						0.5						—
Other equity plans			1.3						( 0.01 )						1.0						—
Equity forwards			6.3						( 0.03 )						—						—
Diluted shares and earnings per average common share			443.4						$ 1.87						428.3						$ 0.29

Earnings per share dilution resulting from stock options outstanding and other equity plans is determined under the treasury stock method. The calculation of diluted earnings per share excluded 366,136 stock options

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outstanding for the three months ended June 30, 2025 and 1,448,982 stock options outstanding for the three months ended June 30, 2024 because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 305,113 stock options outstanding for the six months ended June 30, 2025 and 1,471,220 stock options outstanding for the six months ended June 30, 2024 because their effect would have been antidilutive. Until settlement of the forward sale agreements discussed below in “ Equity Distribution Program ” and “ Equity Forward Sale Agreements, ” earnings per share dilution resulting from the agreements, if any, is determined under the treasury stock method. Share dilution occurs when the average market price of Entergy Corporation’s common stock is higher than the average forward sales price. The calculation of diluted earnings per share excluded 2,423,880 shares for the three months ended June 30, 2025 and 2,897,964 shares for the three months ended June 30, 2024 under forward sale agreements outstanding because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 1,304,889 shares for the six months ended June 30, 2025 and 2,942,440 shares for the six months ended June 30, 2024 under forward sale agreements outstanding because their effect would have been antidilutive.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $ 0.60 for the three months ended June 30, 2025 and $ 0.57 for the three months ended June 30, 2024. Dividends declared per common share were $ 1.20 for the six months ended June 30, 2025 and $ 1.13 for the six months ended June 30, 2024.

(System Energy)

In February 2025, System Energy paid its parent, Entergy Corporation, a $ 20 million distribution out of its common stock.

In May 2025, System Energy paid its parent, Entergy Corporation, a $ 30 million distribution out of its common stock.

Equity Distribution Program

See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s at the market equity distribution program. The following are updates to that discussion.

In February 2025, Entergy Corporation increased by an additional $ 1.5 billion the aggregate gross sales price authorized under its at the market equity distribution program pursuant to the terms of the equity distribution sales agreement for such program. The aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $ 4.5 billion. As of June 30, 2025, an aggregate gross sales price of approximately $ 2.8 billion has been sold under the at the market equity distribution program.

During the six months ended June 30, 2025 and 2024, there were no shares of common stock directly issued under the at the market equity distribution program.

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The following forward sale agreements were entered into by Entergy Corporation under its at the market equity distribution program during the six months ended June 30, 2025:

Effective Date

Shares of Common Stock per Forward Sale Agreement

Maturity Date

Forward Sale Price per Share

Gross Sales Price

Forward Sellers Fees

(Dollars In Thousands, Except Per Share Data)

March 2025

2,713,790

August 2026

$ 84.77

$ 232,216

$ 2,322

During the six months ended June 30, 2025, Entergy Corporation physically settled its obligations under the following forward sale agreements:

			Effective Date of Forward Sale Agreements						Shares of Common Stock Issued						Gross Sales Price						Forward Sellers Fees						Forward Sale Price per Share						Cash Proceeds at Settlement
															(Dollars In Thousands, Except Per Share Data)
Forward sale agreements settled in May 2025:
			December 2023						5,506,492						$ 280,459						$ 2,805
			March 2024						569,844						$ 29,318						$ 293
			March 2024						2,320,830						$ 119,153						$ 1,192
			May 2024						2,556,832						$ 142,387						$ 1,424
			May 2024						2,466,470						$ 134,396						$ 1,344
			June 2024						2,140,006						$ 114,540						$ 1,145
Total									15,560,474																		$ 51.78						$ 805,669

Entergy Corporation incurred an aggregate amount of approximately $ 1.0 million of general issuance costs associated with the May 2025 settlement. Entergy Corporation used the net proceeds for general corporate purposes, which included repayment of commercial paper, outstanding loans under Entergy Corporation’s revolving credit facility, and other debt.

Equity Forward Sale Agreements

In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties. No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the forward sale agreements occur. The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle the transactions by issuing the total of 17.8 million shares of its common stock to the forward counterparties in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $ 81.87 per share) or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements.

Until settlement of the forward sale agreements, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. If Entergy had elected to net share settle the forward sale agreements as of June 30, 2025, Entergy would have been required to deliver 0.2 million shares.

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Treasury Stock

During the six months ended June 30, 2025, Entergy Corporation reissued 1,268,179 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards.  Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2025.

Retained Earnings

On July 25, 2025, Entergy Corporation’s Board of Directors declared a common stock dividend of $ 0.60 per share, payable on September 2, 2025 to holders of record as of August 13, 2025.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, April 1,			$ 39,040						($ 166,128 )
Amounts reclassified from accumulated other comprehensive income (loss)			( 4,602 )						246,489
Net other comprehensive income (loss) for the period			( 4,602 )						246,489
Ending balance, June 30,			$ 34,438						$ 80,361

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, January 1,			$ 42,769						($ 162,460 )
Amounts reclassified from accumulated other comprehensive income (loss)			( 8,331 )						242,821
Net other comprehensive income (loss) for the period			( 8,331 )						242,821
Ending balance, June 30,			$ 34,438						$ 80,361

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The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the three months ended June 30, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, April 1,			$ 52,687						$ 52,774
Amounts reclassified from accumulated other comprehensive income			( 2,132 )						( 2,023 )
Net other comprehensive loss for the period			( 2,132 )						( 2,023 )
Ending balance, June 30,			$ 50,555						$ 50,751

The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the six months ended June 30, 2025 and 2024:

			Pension and Other Postretirement Plan Changes
			2025						2024
			(In Thousands)
Beginning balance, January 1,			$ 53,658						$ 54,798
Amounts reclassified from accumulated other comprehensive income			( 3,103 )						( 4,047 )
Net other comprehensive loss for the period			( 3,103 )						( 4,047 )
Ending balance, June 30,			$ 50,555						$ 50,751

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the three months ended June 30, 2025 and 2024 are as follows:

			Amounts reclassified from AOCI												Income Statement Location
			2025						2024
			(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit			$ 3,462						$ 3,473						(a)
Amortization of net gain			2,551						1,641						(a)
Settlement loss			—						( 316,974 )						(a)
Total amortization and settlement loss			6,013						( 311,860 )
Income taxes			( 1,411 )						65,371						Income taxes
Total amortization and settlement loss (net of tax)			$ 4,602						($ 246,489 )
Total reclassifications for the period (net of tax)			$ 4,602						($ 246,489 )

(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

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Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the six months ended June 30, 2025 and 2024 are as follows:

			Amounts reclassified from AOCI												Income Statement Location
			2025						2024
			(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit			$ 6,924						$ 6,946						(a)
Amortization of net gain			5,102						3,037						(a)
Settlement loss			—						( 316,974 )						(a)
Total amortization and settlement loss			12,026						( 306,991 )
Income taxes			( 3,695 )						64,170						Income taxes
Total amortization and settlement loss (net of tax)			$ 8,331						($ 242,821 )
Total reclassifications for the period (net of tax)			$ 8,331						($ 242,821 )

(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the three months ended June 30, 2025 and 2024 are as follows:

						Amounts reclassified from AOCI												Income Statement Location
						2025						2024
						(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit						$ 1,136						$ 1,136						(a)
Amortization of net gain						1,719						1,632						(a)
Total amortization						2,855						2,768
Income taxes						( 723 )						( 745 )						Income taxes
Total amortization (net of tax)						2,132						2,023
Total reclassifications for the period (net of tax)						$ 2,132						$ 2,023

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

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Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the six months ended June 30, 2025 and 2024 are as follows:

						Amounts reclassified from AOCI												Income Statement Location
						2025						2024
						(In Thousands)
Pension and other postretirement plan changes
Amortization of prior service credit						$ 2,272						$ 2,272						(a)
Amortization of net gain						3,438						3,266						(a)
Total amortization						5,710						5,538
Income taxes						( 2,607 )						( 1,491 )						Income taxes
Total amortization (net of tax)						$ 3,103						$ 4,047
Total reclassifications for the period (net of tax)						$ 3,103						$ 4,047

(a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other postretirement cost.  See Note 6 to the financial statements herein for additional details.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $ 3 billion and expires in June 2030. The facility includes fronting commitments for the issuance of letters of credit against $ 20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225 % of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation.  As there were no borrowings under the facility for the six months ended June 30, 2025, the estimated interest rate as of June 30, 2025 that would have been applied to outstanding borrowings under the facility was 5.93 %. The following is a summary of the amounts outstanding and capacity available under the credit facility as of June 30, 2025:

Capacity						Borrowings						Letters of Credit						Capacity Available
(In Millions)
$ 3,000						$ —						$ 4						$ 2,996

Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65 % or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.

Entergy Corporation has a commercial paper program with a Board-approved program limit of $ 2 billion.  As of June 30, 2025, Entergy Corporation had $ 459 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2025 was 4.65 %.

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Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2025 as follows:

Company						Expiration Date						Amount of Facility						Interest Rate (a)						Amount Drawn as of June 30, 2025						Letters of Credit Outstanding as of June 30, 2025
Entergy Arkansas						April 2026						$ 25 million (b)						6.28 %						$ —						$ —
Entergy Arkansas						June 2030						$ 300 million (c)						5.55 %						$ —						$ —
Entergy Louisiana						June 2030						$ 400 million (c)						5.68 %						$ —						$ —
Entergy Mississippi						June 2030						$ 300 million (c)						5.55 %						$ —						$ —
Entergy New Orleans						June 2027						$ 25 million (c)						6.05 %						$ —						$ —
Entergy Texas						June 2030						$ 300 million (c)						5.68 %						$ —						$ 1.1 million

(a) The interest rate is the estimated interest rate as of June 30, 2025 that would have been applied to outstanding borrowings under the facility.

(b) Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option.

(c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $ 5 million for Entergy Arkansas; $ 15 million for Entergy Louisiana; $ 5 million for Entergy Mississippi; $ 10 million for Entergy New Orleans; and $ 25 million for Entergy Texas.

The commitment fees on the credit facilities range from 0.075 % to 0.375 % of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65 % or less of its total capitalization.  Each Registrant Subsidiary is in compliance with this covenant.

In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. In July 2025, Entergy Texas entered into a second uncommitted standby letter of credit facility in the amount of $ 160 million with a letter of credit fee of 1.05 %. The following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2025:

Company

Amount of Uncommitted Facility

Letter of Credit Fee

Letters of Credit Issued as of June 30, 2025 (a)

Entergy Arkansas

$ 25 million

0.78 %

$ 23.6 million

Entergy Arkansas

$ 75 million

0.50 %

$ —

Entergy Louisiana

$ 125 million

0.78 %

$ 74.3 million

Entergy Louisiana

$ 45 million

0.50 %

$ —

Entergy Mississippi

$ 65 million

0.78 %

$ 47.3 million (b)

Entergy Mississippi

$ 65 million

0.50 %

$ —

Entergy New Orleans

$ 1 million

1.625 %

$ 0.5 million

Entergy Texas

$ 150 million

1.250 %

$ 54.0 million

(a) As of June 30, 2025, letters of credit posted with MISO covered financial transmission rights exposure of $ 3.5 million for Entergy Arkansas, $ 1.2 million for Entergy Louisiana, $ 0.6 million for Entergy Mississippi, and $ 0.6 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights.

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(b) As of June 30, 2025, the letters of credit issued for Entergy Mississippi include $ 46.0 million in MISO letters of credit and $ 1.3 million in non-MISO letters of credit outstanding under this facility.

The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy have FERC-authorized short-term borrowing limits effective through January 2027. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements.  The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.  Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2025 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:

			Authorized						Borrowings
			(In Millions)
Entergy Arkansas			$ 250						$ —
Entergy Louisiana			$ 450						$ —
Entergy Mississippi			$ 200						$ —
Entergy New Orleans			$ 150						$ 21
Entergy Texas			$ 200						$ —
System Energy			$ 200						$ —

Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of June 30, 2025:

Company						Expiration Date						Amount of Facility						Weighted- Average Interest Rate on Borrowings (a)						Amount Outstanding as of June 30, 2025
												(Dollars in Millions)
Entergy Arkansas VIE						June 2027						$ 80						5.44 %						$ 33.2
Entergy Louisiana River Bend VIE						June 2027						$ 105						5.42 %						$ 69.5
Entergy Louisiana Waterford VIE						June 2027						$ 105						5.43 %						$ 61.0
System Energy VIE						June 2027						$ 120						5.43 %						$ 44.3

(a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company VIEs for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company VIE for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.

The commitment fees on the credit facilities are 0.100 % of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs.  Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70 % or less of its total capitalization. Each lessee is in compliance with this covenant.

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The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of June 30, 2025 as follows:

Company

Description

Amount

Entergy Arkansas VIE

1.84 % Series N due July 2026

$ 90 million

Entergy Arkansas VIE

5.54 % Series O due May 2029

$ 70 million

Entergy Louisiana River Bend VIE

2.51 % Series V due June 2027

$ 70 million

Entergy Louisiana Waterford VIE

5.94 % Series J due September 2026

$ 70 million

System Energy VIE

2.05 % Series K due September 2027

$ 90 million

In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense.

As of June 30, 2025, Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through January 2027 for issuances by its nuclear fuel company VIEs.

Debt Issuances and Retirements

(Entergy Arkansas)

In May 2025, Entergy Arkansas issued $ 300 million of 5.45 % Series mortgage bonds due June 2034. Entergy Arkansas expects to use the proceeds, together with other funds, to finance the construction of Lake Catherine Unit 5, and for general corporate purposes.

(Entergy Louisiana)

In January 2025, Entergy Louisiana issued $ 750 million of 5.80 % Series mortgage bonds due March 2055. Entergy Louisiana used the proceeds, together with other funds: (1) to repay, prior to maturity, its $ 190 million of 3.78 % Series mortgage bonds due April 2025; (2) to repay, prior to maturity, its $ 110 million of 3.78 % Series mortgage bonds due April 2025; (3) for capital expenditures; and (4) for general corporate purposes.

(Entergy Mississippi)

In March 2025, Entergy Mississippi issued $ 600 million of 5.80 % Series mortgage bonds due April 2055. Entergy Mississippi expects to use the proceeds, together with other funds, to finance a portion of the construction of the Delta Blues Advanced Power Station, the Delta Solar facility, and the Penton Solar facility, and for general corporate purposes.

(Entergy New Orleans)

In February 2025, Entergy New Orleans entered into a term loan credit agreement providing a $ 80 million unsecured term loan due March 2026. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable adjustment. The rate set as of June 30, 2025 was 5.79 %. Entergy New Orleans received the funds in March 2025 and used the proceeds to repay, at maturity, its $ 78 million of 3.00 % Series mortgage bonds due March 2025 and for general corporate purposes. The term loan was subsequently repaid, prior to its maturity, in July 2025.

(Entergy Texas)

In February 2025, Entergy Texas issued $ 500 million of 5.25 % Series mortgage bonds due April 2035. Entergy Texas expects to use the proceeds, together with other funds, to finance the construction of the Orange County Advanced Power Station and the Lone Star Power Station, and for general corporate purposes.

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(System Energy)

In May 2025, System Energy issued $ 240 million of 5.30 % Series mortgage bonds due December 2034. System Energy used the proceeds, together with other funds, to repay, prior to maturity, its $ 200 million of 2.14 % Series mortgage bonds due December 2025, and for general corporate purposes.

Fair Value

The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of June 30, 2025 were as follows:

			Book Value of Long-Term Debt						Fair Value of Long-Term Debt (a)
			(In Thousands)
Entergy			$ 29,929,838						$ 27,487,432
Entergy Arkansas			$ 5,438,033						$ 4,883,114
Entergy Louisiana			$ 10,399,823						$ 9,410,962
Entergy Mississippi			$ 3,020,687						$ 2,720,374
Entergy New Orleans			$ 737,560						$ 697,241
Entergy Texas			$ 4,038,417						$ 3,729,255
System Energy			$ 1,094,396						$ 1,101,434

(a) Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of December 31, 2024 were as follows:

			Book Value of Long-Term Debt						Fair Value of Long-Term Debt (a)
			(In Thousands)
Entergy			$ 27,991,595						$ 25,181,802
Entergy Arkansas			$ 5,122,494						$ 4,546,643
Entergy Louisiana			$ 9,866,453						$ 8,751,266
Entergy Mississippi			$ 2,427,073						$ 2,116,246
Entergy New Orleans			$ 735,467						$ 697,466
Entergy Texas			$ 3,552,443						$ 3,176,230
System Energy			$ 1,089,736						$ 1,063,946

(a) Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

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Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K.  Awards under Entergy’s plans generally vest over three years.

Stock Options

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of options on 366,136 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $ 17.43 per option.  As of June 30, 2025, there were options on 3,132,728 shares of common stock outstanding with a weighted-average exercise price of $ 56.71 .  The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of June 30, 2025.  The aggregate intrinsic value of the stock options outstanding as of June 30, 2025 was $ 78.6 million.

The following table includes financial information for stock options for the three months ended June 30, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$ 1.0						$ 1.1
Tax benefit recognized in Entergy’s consolidated net income			$ 0.2						$ 0.3
Compensation cost capitalized as part of fixed assets and materials and supplies			$ 0.5						$ 0.5

The following table includes financial information for stock options for the six months ended June 30, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$ 2.1						$ 2.2
Tax benefit recognized in Entergy’s consolidated net income			$ 0.5						$ 0.6
Compensation cost capitalized as part of fixed assets and materials and supplies			$ 1.0						$ 1.0

Other Equity Awards

In February 2025 the Board approved and Entergy granted long-term incentive awards in the form of 510,009 restricted stock awards and 187,036 performance units under the 2019 Omnibus Incentive Plan.  The restricted stock awards were made effective on February 6, 2025 and were valued at $ 82.79 per share, which was the closing price of Entergy Corporation’s common stock on the grant date.  Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date.

The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. To emphasize the importance of environmental stewardship, specifically of carbon-free generation and resilience, an environmental achievement measure was selected as one of the performance measures for the 2025-2027 performance period. For the 2025-2027 performance period, performance will be measured based eighty percent on relative total shareholder return and twenty percent on the environmental achievement measure.  The performance units were granted on February 6, 2025 and eighty percent

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were valued at $ 115.13 per share based on various factors, primarily market conditions; and twenty percent were valued at $ 82.79 per share, the closing price of Entergy Corporation’s common stock on the grant date.  Performance units have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period, and compensation cost for the portion of the award based on the selected environmental achievement measure will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program.

The following table includes financial information for other outstanding equity awards for the three months ended June 30, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$ 9.4						$ 9.8
Tax benefit recognized in Entergy’s consolidated net income			$ 2.3						$ 2.5
Compensation cost capitalized as part of fixed assets and materials and supplies			$ 4.7						$ 4.6

The following table includes financial information for other equity awards for the six months ended June 30, 2025 and 2024:

			2025						2024
			(In Millions)
Compensation expense included in Entergy’s consolidated net income			$ 19.4						$ 19.7
Tax benefit recognized in Entergy’s consolidated net income			$ 4.8						$ 5.0
Compensation cost capitalized as part of fixed assets and materials and supplies			$ 9.5						$ 9.1

Components of Qualified Net Pension Cost

Entergy’s qualified pension costs, including amounts capitalized, for the second quarters of 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$ 23,617						$ 23,370
Interest cost on projected benefit obligation			59,680						65,961
Expected return on assets			( 75,280 )						( 89,506 )
Recognized net loss			13,309						14,854
Settlement charges			—						325,253
Net pension cost			$ 21,326						$ 339,932

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Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$ 47,234						$ 46,746
Interest cost on projected benefit obligation			119,360						136,587
Expected return on assets			( 150,560 )						( 185,486 )
Recognized net loss			26,618						29,974
Settlement charges			—						325,253
Net pension cost			$ 42,652						$ 353,074

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the second quarters of 2025 and 2024, included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 4,427						$ 5,454						$ 1,304						$ 411						$ 1,024						$ 1,372
Interest cost on projected benefit obligation						13,814						14,704						3,699						1,647						2,973						3,585
Expected return on assets						( 17,676 )						( 18,897 )						( 4,949 )						( 2,174 )						( 3,889 )						( 4,575 )
Recognized net loss						4,791						2,268						822						415						454						1,114
Net pension cost						$ 5,356						$ 3,529						$ 876						$ 299						$ 562						$ 1,496

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 4,100						$ 5,551						$ 1,284						$ 440						$ 962						$ 1,383
Interest cost on projected benefit obligation						13,217						13,961						3,521						1,569						2,831						3,386
Expected return on assets						( 18,155 )						( 19,447 )						( 5,113 )						( 2,203 )						( 4,077 )						( 4,633 )
Recognized net loss						5,746						2,602						1,140						470						393						1,162
Settlement charges						—						—						—						—						—						611
Net pension cost						$ 4,908						$ 2,667						$ 832						$ 276						$ 109						$ 1,909

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The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the six months ended June 30, 2025 and 2024, included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 8,854						$ 10,908						$ 2,608						$ 822						$ 2,048						$ 2,744
Interest cost on projected benefit obligation						27,628						29,408						7,398						3,294						5,946						7,170
Expected return on assets						( 35,352 )						( 37,794 )						( 9,898 )						( 4,348 )						( 7,778 )						( 9,150 )
Recognized net loss						9,582						4,536						1,644						830						908						2,228
Net pension cost						$ 10,712						$ 7,058						$ 1,752						$ 598						$ 1,124						$ 2,992

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 8,199						$ 11,102						$ 2,568						$ 880						$ 1,923						$ 2,767
Interest cost on projected benefit obligation						26,434						27,922						7,042						3,138						5,662						6,777
Expected return on assets						( 36,310 )						( 38,894 )						( 10,226 )						( 4,407 )						( 8,154 )						( 9,281 )
Recognized net loss						11,492						5,204						2,280						940						786						2,327
Settlement charges						—						—						—						—						—						611
Net pension cost						$ 9,815						$ 5,334						$ 1,664						$ 551						$ 217						$ 3,201

Non-Qualified Net Pension Cost

Entergy recognized $ 2.5 million and $ 2.7 million in pension cost for its non-qualified pension plans for the second quarters of 2025 and 2024, respectively. For the second quarters of 2025 and 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan. Entergy recognized $ 5 million and $ 5.4 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2025 and 2024, respectively. For the six months ended June 30, 2025 and 2024, there were no settlement charges related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for second quarters of 2025 and 2024:

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Thousands)
2025			$ 47						$ 36						$ 90						$ 35						$ 39
2024			$ 68						$ 51						$ 83						$ 31						$ 62

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The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the six months ended June 30, 2025 and 2024:

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Thousands)
2025			$ 94						$ 72						$ 180						$ 70						$ 78
2024			$ 136						$ 102						$ 166						$ 61						$ 124

For the second quarters of 2025 and 2024, there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sums benefits out of the plan. For the six months ended June 30, 2025 and 2024 there were no settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefits Income

Entergy’s other postretirement benefits income, including amounts capitalized, for the second quarters of 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$ 2,757						$ 3,126
Interest cost on accumulated postretirement benefit obligation (APBO)			9,690						9,852
Expected return on assets			( 10,209 )						( 10,569 )
Amortization of prior service credit			( 5,720 )						( 5,720 )
Recognized net gain			( 3,870 )						( 2,761 )
Net other postretirement benefits income			($ 7,352 )						($ 6,072 )

Entergy’s other postretirement benefits income, including amounts capitalized, for the six months ended June 30, 2025 and 2024, included the following components:

			2025						2024
			(In Thousands)
Service cost - benefits earned during the period			$ 5,514						$ 6,252
Interest cost on APBO			19,380						19,704
Expected return on assets			( 20,418 )						( 21,138 )
Amortization of prior service credit			( 11,440 )						( 11,440 )
Recognized net gain			( 7,740 )						( 5,522 )
Net other postretirement benefits income			($ 14,704 )						($ 12,144 )

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The Registrant Subsidiaries’ other postretirement benefits income, including amounts capitalized, for their current and former employees for the second quarters of 2025 and 2024 included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 572						$ 671						$ 162						$ 52						$ 159						$ 174
Interest cost on APBO						1,775						2,012						489						249						582						394
Expected return on assets						( 4,225 )						—						( 1,328 )						( 1,445 )						( 2,452 )						( 702 )
Amortization of prior service cost (credit)						524						( 1,136 )						( 239 )						( 229 )						( 1,093 )						( 73 )
Recognized net (gain) loss						( 353 )						( 1,811 )						( 57 )						( 27 )						153						( 7 )
Net other postretirement benefits income						($ 1,707 )						($ 264 )						($ 973 )						($ 1,400 )						($ 2,651 )						($ 214 )

2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 642						$ 700						$ 184						$ 51						$ 168						$ 175
Interest cost on APBO						1,833						1,999						486						253						603						398
Expected return on assets						( 4,384 )						—						( 1,372 )						( 1,479 )						( 2,539 )						( 728 )
Amortization of prior service cost (credit)						524						( 1,136 )						( 239 )						( 229 )						( 1,093 )						( 73 )
Recognized net (gain) loss						—						( 1,738 )						15						19						148						—
Net other postretirement benefits income						($ 1,385 )						($ 175 )						($ 926 )						($ 1,385 )						($ 2,713 )						($ 228 )

The Registrant Subsidiaries’ other postretirement benefits income, including amounts capitalized, for their current and former employees for the six months ended June 30, 2025 and 2024 included the following components:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 1,144						$ 1,342						$ 324						$ 104						$ 318						$ 348
Interest cost on APBO						3,550						4,024						978						498						1,164						788
Expected return on assets						( 8,450 )						—						( 2,656 )						( 2,890 )						( 4,904 )						( 1,404 )
Amortization of prior service cost (credit)						1,048						( 2,272 )						( 478 )						( 458 )						( 2,186 )						( 146 )
Recognized net (gain) loss						( 706 )						( 3,622 )						( 114 )						( 54 )						306						( 14 )
Net other postretirement benefits income						($ 3,414 )						($ 528 )						($ 1,946 )						($ 2,800 )						($ 5,302 )						($ 428 )

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2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
						(In Thousands)
Service cost - benefits earned during the period						$ 1,284						$ 1,400						$ 368						$ 102						$ 336						$ 350
Interest cost on APBO						3,666						3,998						972						506						1,206						796
Expected return on assets						( 8,768 )						—						( 2,744 )						( 2,958 )						( 5,078 )						( 1,456 )
Amortization of prior service cost (credit)						1,048						( 2,272 )						( 478 )						( 458 )						( 2,186 )						( 146 )
Recognized net (gain) loss						—						( 3,476 )						30						38						296						—
Net other postretirement benefits income						($ 2,770 )						($ 350 )						($ 1,852 )						($ 2,770 )						($ 5,426 )						($ 456 )

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2025 and 2024:

2025						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$ —						$ 3,493						($ 31 )						$ 3,462
Amortization of net gain (loss)						( 411 )						3,070						( 108 )						2,551
						($ 411 )						$ 6,563						($ 139 )						$ 6,013
Entergy Louisiana
Amortization of prior service credit						$ —						$ 1,136						$ —						$ 1,136
Amortization of net gain (loss)						( 91 )						1,811						( 1 )						1,719
						($ 91 )						$ 2,947						($ 1 )						$ 2,855

2024						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$ —						$ 3,513						($ 40 )						$ 3,473
Amortization of net gain (loss)						( 894 )						2,615						( 80 )						1,641
Settlement loss						( 316,974 )						—						—						( 316,974 )
						($ 317,868 )						$ 6,128						($ 120 )						($ 311,860 )
Entergy Louisiana
Amortization of prior service credit						$ —						$ 1,136						$ —						$ 1,136
Amortization of net gain (loss)						( 104 )						1,738						( 2 )						1,632
						($ 104 )						$ 2,874						($ 2 )						$ 2,768

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Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2025 and 2024:

2025						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$ —						$ 6,986						($ 62 )						$ 6,924
Amortization of net gain (loss)						( 822 )						6,140						( 216 )						5,102
						($ 822 )						$ 13,126						($ 278 )						$ 12,026
Entergy Louisiana
Amortization of prior service credit						$ —						$ 2,272						$ —						$ 2,272
Amortization of net gain (loss)						( 182 )						3,622						( 2 )						3,438
						($ 182 )						$ 5,894						($ 2 )						$ 5,710

2024						Qualified Pension Costs						Other Postretirement Costs						Non-Qualified Pension Costs						Total
						(In Thousands)
Entergy
Amortization of prior service credit (cost)						$ —						$ 7,026						($ 80 )						$ 6,946
Amortization of net gain (loss)						( 2,033 )						5,230						( 160 )						3,037
Settlement loss						( 316,974 )						—						—						( 316,974 )
						($ 319,007 )						$ 12,256						($ 240 )						($ 306,991 )
Entergy Louisiana
Amortization of prior service credit						$ —						$ 2,272						$ —						$ 2,272
Amortization of net gain (loss)						( 208 )						3,476						( 2 )						3,266
						($ 208 )						$ 5,748						($ 2 )						$ 5,538

Accounting for Pension and Other Postretirement Benefits

In accordance with accounting standards, the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

See Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

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Employer Contributions

Based on current assumptions, Entergy expects to contribute $ 240 million to its qualified pension plans in 2025.  As of June 30, 2025, Entergy had contributed $ 99.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their current and former employees in 2025:

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas						System Energy
			(In Thousands)
Expected 2025 pension contributions			$ 35,544						$ 41,253						$ 8,064						$ 5,016						$ 7,725						$ 15,668
Pension contributions made through June 2025			$ 16,968						$ 17,448						$ 3,951						$ 2,112						$ 3,240						$ 6,413
Remaining estimated pension contributions to be made in 2025			$ 18,576						$ 23,805						$ 4,113						$ 2,904						$ 4,485						$ 9,255

Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. See Note 13 to the financial statements herein for discussion of the sale of the natural gas distribution business on July 1, 2025.  Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments.

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The following table includes operating revenues and significant expense categories regularly provided to the chief operating decision maker for the Utility segment, a reconciliation of Utility operating revenues to Entergy’s consolidated operating revenues, and a reconciliation of Utility net income to consolidated net income and net income attributable to Entergy Corporation for the three and six months ended June 30, 2025 and 2024:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Thousands)												(In Thousands)
Utility operating revenues						$ 3,315,723						$ 2,941,404						$ 6,145,320						$ 5,713,577
Reconciliation of revenues:
Other revenues (a)						13,144						12,227						30,448						34,703
Elimination of intersegment revenues						( 18 )						( 11 )						( 45 )						( 32 )
Consolidated operating revenues						3,328,849						2,953,620						6,175,723						5,748,248
Less Utility expenses and other items:
Fuel, fuel-related expenses, and gas purchased for resale						631,773						514,223						970,756						1,118,627
Purchased power						372,842						193,010						714,926						412,204
Other operation and maintenance expenses						713,296						685,990						1,375,770						1,366,705
Other regulatory charges (credits) - net						( 55,957 )						125,607						( 72,800 )						234,954
Other Utility items (b)						1,051,596						979,255						2,063,453						1,941,788
Utility net income						602,173						443,319						1,093,215						639,299
Reconciliation of net income:
Non-cash pension settlement charge (c)						—						( 316,738 )						—						( 316,738 )
Income taxes on reconciling item noted above						—						66,515						—						66,515
Other loss						( 55,678 )						( 62,479 )						( 109,050 )						( 102,362 )
Elimination of intersegment loss						( 74,541 )						( 78,885 )						( 149,789 )						( 158,446 )
Consolidated net income						471,954						51,732						834,376						128,268
Preferred dividend requirements of subsidiaries and noncontrolling interests (d)						4,024						2,810						5,686						4,065
Net income attributable to Entergy Corporation						$ 467,930						$ 48,922						$ 828,690						$ 124,203

(a) See Note 12 to the financial statements herein and Note 19 to the financial statements in the Form 10-K for discussion of other revenues.

(b) Other Utility items includes nuclear refueling outage expenses, asset write-offs, decommissioning expenses, taxes other than income taxes, depreciation and amortization expenses, other income, interest expense, and income tax expense.

(c) See Note 11 to the financial statements in the Form 10-K for discussion of the one-time non-cash pension settlement charge resulting from a group annuity contract purchased in second quarter 2024 to settle certain pension liabilities, of which $ 8 million was recorded at Utility and $ 317 million was recorded at Parent & Other.

(d) Preferred dividend requirements of subsidiaries and noncontrolling interests is substantially derived from the Utility segment. See Note 6 to the financial statements in the Form 10-K for discussion of preferred stock and noncontrolling interests.

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The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the three months ended June 30, 2025 and 2024:

						Utility						Parent & Other						Eliminations						Consolidated
						(In Thousands)
2025
Depreciation, amortization, and decommissioning						$ 577,386						$ 1,766						$ —						$ 579,152
Interest and investment income						$ 160,248						$ 2,146						($ 74,975 )						$ 87,419
Interest expense						$ 261,033						$ 61,475						($ 434 )						$ 322,074
Income taxes						$ 152,836						($ 14,437 )						$ —						$ 138,399
2024
Depreciation, amortization, and decommissioning						$ 557,962						$ 1,594						$ —						$ 559,556
Interest and investment income						$ 141,249						$ 9,985						($ 80,647 )						$ 70,587
Interest expense						$ 225,511						$ 65,829						($ 1,763 )						$ 289,577
Income taxes						$ 113,017						($ 79,383 )						$ —						$ 33,634

The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the six months ended June 30, 2025 and 2024:

						Utility						Parent & Other						Eliminations						Consolidated
						(In Thousands)
2025
Depreciation, amortization, and decommissioning						$ 1,144,573						$ 3,451						$ —						$ 1,148,024
Interest and investment income						$ 267,423						$ 3,835						($ 150,433 )						$ 120,825
Interest expense						$ 528,164						$ 124,344						($ 643 )						$ 651,865
Income taxes						$ 267,109						($ 28,669 )						$ —						$ 238,440
Total assets as of June 30, 2025						$ 72,511,224						$ 777,674						($ 4,905,758 )						$ 68,383,140
Total expenditures for additions to long-lived assets						$ 3,798,452						$ 606						$ —						$ 3,799,058
2024
Asset write-offs, impairments, and related charges (credits)						$ 131,775						$ —						$ —						$ 131,775
Depreciation, amortization, and decommissioning						$ 1,109,452						$ 3,146						$ —						$ 1,112,598
Interest and investment income						$ 366,499						$ 15,353						($ 160,569 )						$ 221,283
Interest expense						$ 437,659						$ 121,242						($ 2,124 )						$ 556,777
Income taxes						$ 147,565						($ 92,938 )						$ —						$ 54,627
Total assets as of December 31, 2024						$ 68,951,564						$ 721,459						($ 4,882,991 )						$ 64,790,032
Total expenditures for additions to long-lived assets						$ 2,457,683						$ 693						$ —						$ 2,458,376

Eliminations are primarily intersegment activity. All of Entergy’s goodwill is related to the Utility segment.

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Registrant Subsidiaries

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one operating and reportable segment, an integrated utility business which includes the generation, transmission, and distribution of electric power; and operation of a small natural gas distribution business at each of Entergy Louisiana and Entergy New Orleans through June 30, 2025. See Note 13 to the financial statements herein for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. System Energy has one operating and reportable segment, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations are managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. All segment financial information for the Registrant Subsidiaries is as reported on the respective financial statements for each of the Registrant Subsidiaries.

Market Risk

In the normal course of business, Entergy is exposed to a number of market risks.  Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument.  All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk.  Entergy uses derivatives primarily to mitigate commodity price risk associated with the price of fuel.

The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation.  To the extent approved by their retail regulators, the Utility operating companies use commodity and financial instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs, that are recovered from customers.

Derivatives

Entergy designates a significant portion of its derivative instruments as normal purchase/normal sale transactions due to their physical settlement provisions, including power purchase and sales agreements, fuel purchase agreements, and capacity contracts. Certain derivative instruments do not qualify for designation as normal purchase/normal sale transactions due to their financial settlement provisions. See further discussion below regarding the accounting for these derivative instruments.

Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of natural gas swaps that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy New Orleans. The maximum length of time over which Entergy has executed natural gas swaps as of June 30, 2025 is 9 months for Entergy Mississippi. The total volume of natural gas swaps outstanding as of June 30, 2025 is 9,493,000 MMBtu for Entergy and Entergy Mississippi. As of June 30, 2025, Entergy Louisiana and Entergy New Orleans had no outstanding natural gas swaps. Credit support for these natural gas swaps is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral.

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During the second quarter 2025, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2025 through May 31, 2026. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2025 is 102,393 GWh for Entergy, including 20,804 GWh for Entergy Arkansas, 55,064 GWh for Entergy Louisiana, 11,361 GWh for Entergy Mississippi, 3,660 GWh for Entergy New Orleans, and 11,505 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy’s non-utility operations business is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of June 30, 2025 and December 31, 2024. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas as of June 30, 2025 and for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas as of December 31, 2024.

The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of June 30, 2025 and December 31, 2024 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)
												(In Millions)
2025
Assets:
Financial transmission rights						Prepayments and other						$ 49						($ 1 )						$ 48
Liabilities:
Natural gas swaps						Other current liabilities						$ 3						$ —						$ 3
2024
Assets:
Natural gas swaps						Prepayments and other						$ 2						$ —						$ 2
Financial transmission rights						Prepayments and other						$ 21						($ 1 )						$ 20
Liabilities:
Financial transmission rights						Other current liabilities						($ — )						$ 1						$ 1

(a) Represents the gross amounts of recognized assets/liabilities

(b) Represents the netting of fair value balances with the same counterparty

(c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets

(d) Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $ 6 million as of June 30, 2025 and $ 2 million as of December 31, 2024

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The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2025 and 2024 are as follows:

Instrument

Income Statement Location

Amount of gain recorded in the income statement

(In Millions)

2025

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

(a)

$ 11

Financial transmission rights

Purchased power expense

(b)

$ 66

2024

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

(a)

$ 3

Financial transmission rights

Purchased power expense

(b)

$ 47

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2025 and 2024 are as follows:

Instrument

Income Statement Location

Amount of gain (loss) recorded in the income statement

(In Millions)

2025

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

(a)

($ 1 )

Financial transmission rights

Purchased power expense

(b)

$ 114

2024

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

(a)

($ 3 )

Financial transmission rights

Purchased power expense

(b)

$ 100

(a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.

(b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

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The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of June 30, 2025 and December 31, 2024 are shown in the tables below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)						Registrant
												(In Millions)
2025
Assets:
Financial transmission rights						Prepayments and other						$ 11.1						$ —						$ 11.1						Entergy Arkansas
Financial transmission rights						Prepayments and other						$ 28.6						($ 0.3 )						$ 28.3						Entergy Louisiana
Financial transmission rights						Prepayments and other						$ 1.5						($ 0.1 )						$ 1.4						Entergy Mississippi
Financial transmission rights						Prepayments and other						$ 3.0						$ —						$ 3.0						Entergy New Orleans
Financial transmission rights						Prepayments and other						$ 4.5						($ 0.6 )						$ 3.9						Entergy Texas
Liabilities:
Natural gas swaps						Other current liabilities						$ 3.0						$ —						$ 3.0						Entergy Mississippi

Instrument						Balance Sheet Location						Gross Fair Value (a)						Offsetting Position (b)						Net Fair Value (c) (d)						Registrant
												(In Millions)
2024
Assets:
Natural gas swaps						Prepayments and other						$ 1.6						$ —						$ 1.6						Entergy Mississippi
Financial transmission rights						Prepayments and other						$ 8.6						($ 0.1 )						$ 8.5						Entergy Arkansas
Financial transmission rights						Prepayments and other						$ 8.7						($ 0.1 )						$ 8.6						Entergy Louisiana
Financial transmission rights						Prepayments and other						$ 1.3						$ —						$ 1.3						Entergy New Orleans
Financial transmission rights						Prepayments and other						$ 2.0						($ 0.1 )						$ 1.9						Entergy Texas
Liabilities:
Financial transmission rights						Other current liabilities						($ 0.4 )						$ 0.9						$ 0.5						Entergy Mississippi

(a) Represents the gross amounts of recognized assets/liabilities

(b) Represents the netting of fair value balances with the same counterparty

(c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d) Excludes letters of credit posted with MISO to cover financial transmission rights exposure in the amount of $ 3.5 million for Entergy Arkansas, $ 1.2 million for Entergy Louisiana, $ 0.6 million for Entergy Mississippi,

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and $ 0.6 million for Entergy Texas as of June 30, 2025 and in the amount of $ 0.5 million for Entergy Arkansas, $ 0.1 million for Entergy Louisiana, $ 0.8 million for Entergy Mississippi, $ 0.1 million for Entergy New Orleans, and $ 0.3 million for Entergy Texas as of December 31, 2024.

The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the three months ended June 30, 2025 and 2024 are as follows:

Instrument

Income Statement Location

Amount of gain (loss) recorded in the income statement

Registrant

(In Millions)

2025

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

$ 11.4

(a)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 9.5

(b)

Entergy Arkansas

Financial transmission rights

Purchased power expense

$ 42.0

(b)

Entergy Louisiana

Financial transmission rights

Purchased power expense

$ 3.1

(b)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 8.8

(b)

Entergy New Orleans

Financial transmission rights

Purchased power expense

$ 2.3

(b)

Entergy Texas

2024

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

($ 3.0 )

(a)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 12.0

(b)

Entergy Arkansas

Financial transmission rights

Purchased power expense

$ 25.0

(b)

Entergy Louisiana

Financial transmission rights

Purchased power expense

$ 2.1

(b)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 3.3

(b)

Entergy New Orleans

Financial transmission rights

Purchased power expense

$ 4.6

(b)

Entergy Texas

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The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the six months ended June 30, 2025 and 2024 are as follows:

Instrument

Income Statement Location

Amount of gain (loss) recorded in the income statement

Registrant

(In Millions)

2025

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

($ 1.2 )

(a)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 28.2

(b)

Entergy Arkansas

Financial transmission rights

Purchased power expense

$ 64.1

(b)

Entergy Louisiana

Financial transmission rights

Purchased power expense

$ 5.1

(b)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 11.1

(b)

Entergy New Orleans

Financial transmission rights

Purchased power expense

$ 5.8

(b)

Entergy Texas

2024

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

$ 2.3

(a)

Entergy Mississippi

Natural gas swaps

Fuel, fuel-related expenses, and gas purchased for resale

$ 0.5

(a)

Entergy New Orleans

Financial transmission rights

Purchased power expense

$ 38.9

(b)

Entergy Arkansas

Financial transmission rights

Purchased power expense

$ 41.2

(b)

Entergy Louisiana

Financial transmission rights

Purchased power expense

$ 3.1

(b)

Entergy Mississippi

Financial transmission rights

Purchased power expense

$ 4.4

(b)

Entergy New Orleans

Financial transmission rights

Purchased power expense

$ 12.1

(b)

Entergy Texas

(a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.

(b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

Fair Values

The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling.  Considerable judgment is required in developing the estimates of fair value.  Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange.  Gains or losses realized on financial instruments are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments.

Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market

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participants at the date of measurement.  Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value.  The inputs can be readily observable, corroborated by market data, or generally unobservable.  Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value.

Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value.  The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs.

The three levels of the fair value hierarchy are:

• Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.  Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas swaps traded on exchanges with active markets.  Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase.

• Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date.  Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads.  Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value.  Level 2 inputs include the following:

– quoted prices for similar assets or liabilities in active markets;

– quoted prices for identical assets or liabilities in inactive markets;

– inputs other than quoted prices that are observable for the asset or liability; or

– inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 2 consists primarily of individually-owned debt instruments and gas swaps valued using observable inputs.

• Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources.  These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability.  Level 3 consists primarily of financial transmission rights.

The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices.  They are classified as Level 3 assets and liabilities.  The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight.  The values are calculated internally and verified against the data published by MISO. Entergy’s Accounting group reviews these valuations for reasonableness, with the assistance of others within the organization with knowledge of the various inputs and assumptions used in the valuation. The Office of Corporate Risk Oversight reports to the Vice President and Treasurer.  The Accounting group reports to the Chief Accounting Officer.

The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024.  The assessment of

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the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 1,012						$ —						$ —						$ 1,012
Decommissioning trust funds (a):
Equity securities						48						—						—						48
Debt securities						857						1,250						—						2,107
Common trusts (b)																								3,678
Securitization recovery trust account						1						—						—						1
Storm reserve escrow accounts						303						—						—						303
Financial transmission rights						—						—						48						48
						$ 2,221						$ 1,250						$ 48						$ 7,197
Liabilities:
Natural gas swaps						$ —						$ —						$ 3						$ 3

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 811						$ —						$ —						$ 811
Decommissioning trust funds (a):
Equity securities						30						—						—						30
Debt securities						848						1,199						—						2,047
Common trusts (b)																								3,486
Securitization recovery trust account						4						—						—						4
Storm reserve escrow accounts						340						—						—						340
Natural gas swaps						2						—						—						2
Financial transmission rights						—						—						20						20
						$ 2,035						$ 1,199						$ 20						$ 6,740
Liabilities:
Financial transmission rights						$ —						$ —						$ 1						$ 1

(a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 9 to the financial statements herein for additional information on the investment portfolios.

(b) Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.

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The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2025 and 2024:

			2025						2024
			(In Millions)
Balance as of April 1,			$ 7						$ 9
Issuances of financial transmission rights			49						53
Gains included as a regulatory liability/asset			58						34
Settlements			( 66 )						( 47 )
Balance as of June 30,			$ 48						$ 49

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2025 and 2024:

									2025						2024
									(In Millions)
Balance as of January 1,									$ 20						$ 21
Issuances of financial transmission rights									49						53
Gains included as a regulatory liability/asset									93						75
Settlements									( 114 )						( 100 )
Balance as of June 30,									$ 48						$ 49

The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO.

The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2025 and December 31, 2024.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect placement within the fair value hierarchy levels.

Entergy Arkansas

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 182.4						$ —						$ —						$ 182.4
Decommissioning trust funds (a):
Equity securities						23.3						—						—						23.3
Debt securities						266.3						327.8						—						594.1
Common trusts (b)																								1,069.3
Financial transmission rights						—						—						11.1						11.1
						$ 472.0						$ 327.8						$ 11.1						$ 1,880.2

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2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 3.4						$ —						$ —						$ 3.4
Decommissioning trust funds (a):
Equity securities						12.9						—						—						12.9
Debt securities						259.9						319.1						—						579.0
Common trusts (b)																								1,012.5
Financial transmission rights						—						—						8.5						8.5
						$ 276.2						$ 319.1						$ 8.5						$ 1,616.3

Entergy Louisiana

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 298.3						$ —						$ —						$ 298.3
Decommissioning trust funds (a):
Equity securities						20.8						—						—						20.8
Debt securities						332.4						598.9						—						931.3
Common trusts (b)																								1,588.4
Storm reserve escrow account						228.4						—						—						228.4
Financial transmission rights						—						—						28.3						28.3
						$ 879.9						$ 598.9						$ 28.3						$ 3,095.5

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 326.8						$ —						$ —						$ 326.8
Decommissioning trust funds (a):
Equity securities						14.5						—						—						14.5
Debt securities						326.0						582.1						—						908.1
Common trusts (b)																								1,506.5
Storm reserve escrow account						256.7						—						—						256.7
Financial transmission rights						—						—						8.6						8.6
						$ 924.0						$ 582.1						$ 8.6						$ 3,021.2

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Entergy Mississippi

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 401.3						$ —						$ —						$ 401.3
Financial transmission rights						—						—						1.4						1.4
						$ 401.3						$ —						$ 1.4						$ 402.7
Liabilities:
Natural gas swaps						$ —						$ —						$ 3.0						$ 3.0

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 155.5						$ —						$ —						$ 155.5
Natural gas swaps						1.6						—						—						1.6
						$ 157.1						$ —						$ —						$ 157.1
Liabilities:
Financial transmission rights						$ —						$ —						$ 0.5						$ 0.5

Entergy New Orleans

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Storm reserve escrow account						$ 75.1						$ —						$ —						$ 75.1
Financial transmission rights						—						—						3.0						3.0
						$ 75.1						$ —						$ 3.0						$ 78.1

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 31.4						$ —						$ —						$ 31.4
Securitization recovery trust account						1.6						—						—						1.6
Storm reserve escrow account						83.7						—						—						83.7
Financial transmission rights						—						—						1.3						1.3
						$ 116.7						$ —						$ 1.3						$ 118.0

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Entergy Texas

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets :
Temporary cash investments						$ 17.7						$ —						$ —						$ 17.7
Securitization recovery trust account						1.0						—						—						1.0
Financial transmission rights						—						—						3.9						3.9
						$ 18.7						$ —						$ 3.9						$ 22.6

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets :
Temporary cash investments						$ 184.7						$ —						$ —						$ 184.7
Securitization recovery trust account						2.7						—						—						2.7
Financial transmission rights						—						—						1.9						1.9
						$ 187.4						$ —						$ 1.9						$ 189.3

System Energy

2025						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 31.7						$ —						$ —						$ 31.7
Decommissioning trust funds (a):
Equity securities						4.1						—						—						4.1
Debt securities						258.6						323.5						—						582.1
Common trusts (b)																								1,020.1
						$ 294.4						$ 323.5						$ —						$ 1,638.0

2024						Level 1						Level 2						Level 3						Total
						(In Millions)
Assets:
Temporary cash investments						$ 28.5						$ —						$ —						$ 28.5
Decommissioning trust funds (a):
Equity securities						2.4						—						—						2.4
Debt securities						262.4						297.4						—						559.8
Common trusts (b)																								966.9
						$ 293.3						$ 297.4						$ —						$ 1,557.6

(a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 9 to the financial statements herein for additional information on the investment portfolios.

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(b) Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2025.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of April 1,			$ 3.0						$ 3.4						($ 0.1 )						$ 0.4						$ 0.4
Issuances of financial transmission rights			11.8						28.7						1.5						3.0						4.0
Gains included as a regulatory liability/asset			5.8						38.2						3.1						8.4						1.8
Settlements			( 9.5 )						( 42.0 )						( 3.1 )						( 8.8 )						( 2.3 )
Balance as of June 30,			$ 11.1						$ 28.3						$ 1.4						$ 3.0						$ 3.9

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2024.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of April 1,			$ 2.8						$ 4.1						$ 0.6						$ 0.5						$ 1.2
Issuances of financial transmission rights			17.6						21.6						3.9						2.8						7.3
Gains included as a regulatory liability/asset			7.7						19.1						1.2						2.6						2.7
Settlements			( 12.0 )						( 25.0 )						( 2.1 )						( 3.3 )						( 4.6 )
Balance as of June 30,			$ 16.1						$ 19.8						$ 3.6						$ 2.6						$ 6.6

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2025.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of January 1,			$ 8.6						$ 8.6						($ 0.5 )						$ 1.3						$ 1.9
Issuances of financial transmission rights			11.8						28.7						1.5						2.9						4.0
Gains included as a regulatory liability/asset			18.9						55.1						5.5						9.9						3.8
Settlements			( 28.2 )						( 64.1 )						( 5.1 )						( 11.1 )						( 5.8 )
Balance as of June 30,			$ 11.1						$ 28.3						$ 1.4						$ 3.0						$ 3.9

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The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2024.

			Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
			(In Millions)
Balance as of January 1,			$ 6.0						$ 9.8						$ 1.4						$ 1.1						$ 2.4
Issuances of financial transmission rights			17.6						21.6						3.9						2.8						7.3
Gains included as a regulatory liability/asset			31.4						29.6						1.4						3.1						9.0
Settlements			( 38.9 )						( 41.2 )						( 3.1 )						( 4.4 )						( 12.1 )
Balance as of June 30,			$ 16.1						$ 19.8						$ 3.6						$ 2.6						$ 6.6

The NRC requires certain of the Utility operating companies and System Energy to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1 and 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets.  For the 30 % interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other long-term liabilities on the consolidated balance sheets of Entergy and Entergy Louisiana for the unrealized trust earnings not currently expected to be needed to decommission the plant. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2025 on equity securities still held as of June 30, 2025 were $ 536 million and $ 513 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index.  A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale debt securities held as of June 30, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$ 2,107						$ 2,047
Unrealized gains						$ 20						$ 7
Unrealized losses						$ 60						$ 80

As of June 30, 2025 and December 31, 2024, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $ 2,148 million as of June 30, 2025 and $ 2,121 million as of December 31, 2024.  As of June 30, 2025, available-for-sale debt securities had an average coupon rate of

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approximately 4.14 %, an average duration of approximately 6.39 years, and an average maturity of approximately 10.81 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$ 565						$ 17						$ 1,102						$ 24
More than 12 months						438						43						510						56
Total						$ 1,003						$ 60						$ 1,612						$ 80

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$ 29						$ 36
1 year - 5 years			541						574
5 years - 10 years			672						629
10 years - 15 years			195						166
15 years - 20 years			197						218
20 years+			473						424
Total			$ 2,107						$ 2,047

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2025 and 2024:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Millions)
Proceeds from disposition of securities						$ 227						$ 161						$ 489						$ 330
Realized gains						$ 1						$ —						$ 2						$ 1
Realized losses						$ 4						$ 14						$ 8						$ 20

During the three and six months ended June 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

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Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$ 594.1						$ 579.0
Unrealized gains						$ 5.4						$ 1.2
Unrealized losses						$ 17.5						$ 25.8

The amortized cost of available-for-sale debt securities was $ 606.1 million as of June 30, 2025 and $ 603.5 million as of December 31, 2024.  As of June 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 3.75 %, an average duration of approximately 6.20 years, and an average maturity of approximately 8.46 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2025 on equity securities still held as of June 30, 2025 were $ 138 million and $ 126.7 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$ 141.8						$ 4.6						$ 282.8						$ 8.2
More than 12 months						174.0						12.9						195.0						17.6
Total						$ 315.8						$ 17.5						$ 477.8						$ 25.8

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$ 26.3						$ 31.7
1 year - 5 years			159.2						142.5
5 years - 10 years			251.7						231.0
10 years - 15 years			37.4						62.2
15 years - 20 years			43.1						62.8
20 years+			76.4						48.8
Total			$ 594.1						$ 579.0

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The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2025 and 2024:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Millions)
Proceeds from disposition of securities						$ —						$ 5.5						$ —						$ 17.9
Realized gains						$ —						$ 0.1						$ —						$ 0.1
Realized losses						$ —						$ 0.4						$ —						$ 0.9

During three and six months ended June 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$ 931.3						$ 908.1
Unrealized gains						$ 8.1						$ 3.6
Unrealized losses						$ 24.1						$ 26.9

The amortized cost of available-for-sale debt securities was $ 947.3 million as of June 30, 2025 and $ 931.5 million as of December 31, 2024.  As of June 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.40 %, an average duration of approximately 6.57 years, and an average maturity of approximately 12.38 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2025 on equity securities still held as of June 30, 2025 were $ 267.9 million and $ 254.6 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
						(In Millions)
Less than 12 months						$ 318.7						$ 9.4						$ 543.8						$ 8.8
More than 12 months						150.6						14.7						178.4						18.1
Total						$ 469.3						$ 24.1						$ 722.2						$ 26.9

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The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$ 2.4						$ 4.4
1 year - 5 years			212.3						188.2
5 years - 10 years			214.3						259.4
10 years - 15 years			115.0						80.9
15 years - 20 years			107.6						106.1
20 years+			279.7						269.1
Total			$ 931.3						$ 908.1

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2025 and 2024:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Millions)
Proceeds from disposition of securities						$ 71.5						$ 62.5						$ 181.5						$ 110.9
Realized gains						$ 0.1						$ 0.1						$ 0.2						$ 0.2
Realized losses						$ 2.4						$ 4.8						$ 4.0						$ 7.7

During the three and six months ended June 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of June 30, 2025 and December 31, 2024 are summarized as follows:

						2025						2024
						(In Millions)
Fair value						$ 582.1						$ 559.8
Unrealized gains						$ 6.1						$ 1.9
Unrealized losses						$ 19.0						$ 27.6

The amortized cost of available-for-sale debt securities was $ 595 million as of June 30, 2025 and $ 585.5 million as of December 31, 2024.  As of June 30, 2025, the available-for-sale debt securities had an average coupon rate of approximately 4.13 %, an average duration of approximately 6.27 years, and an average maturity of approximately 10.73 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2025 on equity securities still held as of June 30, 2025 were $ 130.5 million and $ 131.3 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

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The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2025 and December 31, 2024:

						2025												2024
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
			(In Millions)
Less than 12 months						$ 104.2						$ 3.3						$ 275.6						$ 6.8
More than 12 months						113.8						15.7						136.8						20.8
Total						$ 218.0						$ 19.0						$ 412.4						$ 27.6

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2025 and December 31, 2024 were as follows:

			2025						2024
			(In Millions)
Less than 1 year			$ 0.2						$ 0.2
1 year - 5 years			169.2						243.7
5 years - 10 years			206.4						138.9
10 years - 15 years			42.5						22.7
15 years - 20 years			46.4						49.4
20 years+			117.4						104.9
Total			$ 582.1						$ 559.8

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and six months ended June 30, 2025 and 2024:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Millions)
Proceeds from disposition of securities						$ 155.3						$ 93.5						$ 307.6						$ 201.5
Realized gains						$ 0.8						$ —						$ 1.3						$ 0.2
Realized losses						$ 1.4						$ 8.4						$ 4.0						$ 11.9

During the three and six months ended June 30, 2025 and 2024, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

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See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion.

Other Tax Matters

Inflation Reduction Act of 2022

As discussed in the Note 3 to the financial statements in the Form 10-K, the Inflation Reduction Act, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power facilities. Entergy Arkansas, Entergy Louisiana, and System Energy have the potential to generate zero-emission nuclear power production tax credits for electricity generated by their respective nuclear power facilities. Due to the uncertainty of the value, if any, of credits Entergy Arkansas, Entergy Louisiana, or System Energy may receive, such credits for the nuclear power produced in 2024 were not recognized as of December 31, 2024.

In second quarter 2025, Entergy, Entergy Arkansas, Entergy Louisiana, and System Energy determined, based on current analysis and evolving regulatory developments, that it was appropriate to record zero-emission nuclear power production tax credits for electricity generated in 2024 by their respective nuclear power facilities and the credits are expected to be claimed on the Entergy 2024 federal income tax return. Because the U.S. Treasury and the IRS have not issued final guidance on the application of Internal Revenue Code section 45U, including the definition of “gross receipts,” Entergy considers the tax position associated with these credits to be uncertain under the provisions of income tax accounting standards. As such, the recognition of the credits included a corresponding provision for uncertain tax positions for the full amount of the credits recognized.

The value of the credits was calculated based on the amount of electricity generated and sold by each nuclear generating unit owned by Entergy Arkansas, Entergy Louisiana, and System Energy during 2024, multiplied by the applicable credit rate (i.e. dollars per kW). The applicable credit rate included the incremental amount of credit for meeting the “prevailing wages” criteria under the Inflation Reduction Act. Entergy also applied the statutorily required reduction amount in arriving at the value of the credits. This reduction amount was driven by the “Gross receipts” received by each unit for its 2024 energy production. Entergy Arkansas, Entergy Louisiana, and System Energy recognized production tax credits of $ 221.4 million, $ 208.9 million, and $ 140.9 million, respectively, resulting in an Entergy consolidated production tax credit of $ 571.2 million. To the extent future guidance allows Entergy to realize the value of the credits under the provisions of income tax accounting standards, the monetized value of the credits are expected to be shared with customers.

Entergy Arkansas, Entergy Louisiana, and System Energy expect to transfer the credits to third parties for cash (including a reasonable discount) prior to the filing of the Entergy 2024 federal income tax return. As such, Entergy Arkansas, Entergy Louisiana, System Energy, and the relevant affiliates are preparing or have submitted filings with the FERC and their respective retail regulators to determine a fair and reasonable approach, including risk sharing and timing, to incorporate the net cash proceeds received for these credits into future customer rates, particularly in light of the related provision for uncertain tax position. Entergy will continue to monitor developments and reassess its tax position as additional guidance or other information emerges.

Sale of Natural Gas Distribution Businesses

See Note 13 to the financial statements herein for discussion of the sale of Entergy New Orleans’ and Entergy Louisiana’s natural gas distribution businesses on July 1, 2025. Entergy is expected to recognize a gain of approximately $ 335 million for tax purposes, with Entergy Louisiana and Entergy New Orleans recognizing

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$ 150 million and $ 185 million, respectively. Both Entergy and Entergy Louisiana have sufficient federal tax net operating loss carryforwards to offset their respective gains. Accordingly, Entergy does not have a resulting federal income tax obligation as a result of the transaction, nor will Entergy Louisiana be required to make a federal tax payment under the terms of the intercompany income tax allocation agreement. Entergy New Orleans is expected to fully absorb its federal tax net operating loss carryforward in 2025, and its resulting federal tax payment under the intercompany income tax allocation agreement will be dependent on its results of operations for the remainder of the year. Estimated state tax payments for Entergy, Entergy Louisiana, and Entergy New Orleans are not anticipated to be significant.

See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities (VIEs).  See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities, commercial paper borrowings, and long-term debt. See Note 6 to the financial statements in the Form 10-K for discussion of noncontrolling interests.

Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of June 30, 2025 and December 31, 2024, the primary asset held by the storm trust I was $ 2.8 billion and $ 2.9 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust I is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $ 28.9 million as of June 30, 2025 and $ 28.8 million as of December 31, 2024.

Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of June 30, 2025 and December 31, 2024, the primary asset held by the storm trust II was $ 1.3 billion and $ 1.4 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1 % beneficial interest in the storm trust II is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $ 14.1 million as of June 30, 2025 and $ 13.9 million as of December 31, 2024.

System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest in the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $ 8.6 million in each of the six months ended June 30, 2025 and the six months ended June 30, 2024.

AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of June 30, 2025, AR Searcy Partnership, LLC recorded assets equal to $ 127.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $ 114 million. As of December 31, 2024, AR Searcy Partnership, LLC recorded assets equal to $ 129.7 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $ 113.2 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Arkansas.

MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of June 30, 2025, MS Sunflower Partnership, LLC recorded assets equal to $ 155.4 million, primarily consisting of property, plant, and equipment,

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and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $ 136.9 million. As of December 31, 2024, MS Sunflower Partnership, LLC recorded assets equal to $ 157.8 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $ 132.7 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Mississippi.

Operating Revenues

See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended June 30, 2025 and 2024 were as follows:

						2025						2024
						(In Thousands)
Utility:
Residential						$ 1,091,035						$ 1,009,836
Commercial						771,097						713,282
Industrial						945,901						792,721
Governmental						70,623						65,861
Total billed retail						2,878,656						2,581,700
Sales for resale (a)						146,457						54,579
Other electric revenues (b)						246,674						257,813
Revenues from contracts with customers						3,271,787						2,894,092
Other Utility revenues (c)						3,158						11,955
Electric revenues						3,274,945						2,906,047
Natural gas revenues						40,778						35,357
Other revenues (d)						13,126						12,216
Total operating revenues						$ 3,328,849						$ 2,953,620

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Entergy’s total revenues for the six months ended June 30, 2025 and 2024 were as follows:

						2025						2024
						(In Thousands)
Utility:
Residential						$ 2,204,340						$ 2,080,177
Commercial						1,455,104						1,405,133
Industrial						1,720,020						1,541,679
Governmental						133,441						131,172
Total billed retail						5,512,905						5,158,161
Sales for resale (a)						198,330						133,583
Other electric revenues (b)						322,892						293,847
Revenues from contracts with customers						6,034,127						5,585,591
Other Utility revenues (c)						( 1,316 )						26,962
Electric revenues						6,032,811						5,612,553
Natural gas revenues						112,509						101,024
Other revenues (d)						30,403						34,671
Total operating revenues						$ 6,175,723						$ 5,748,248

The Utility operating companies’ total revenues for the three months ended June 30, 2025 and 2024 were as follows:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$ 212,265						$ 408,293						$ 172,575						$ 73,279						$ 224,623
Commercial						141,468						306,916						147,052						58,133						117,528
Industrial						174,555						570,303						53,629						7,800						139,614
Governmental						4,911						23,622						14,544						20,656						6,890
Total billed retail						533,199						1,309,134						387,800						159,868						488,655
Sales for resale (a)						84,533						109,243						61,713						10,027						5,195
Other electric revenues (b)						78,808						75,871						41,739						13,779						37,761
Revenues from contracts with customers						696,540						1,494,248						491,252						183,674						531,611
Other revenues (c)						1,147						1,256						623						107						30
Electric revenues						697,687						1,495,504						491,875						183,781						531,641
Natural gas revenues						—						14,559						—						26,219						—
Total operating revenues						$ 697,687						$ 1,510,063						$ 491,875						$ 210,000						$ 531,641

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2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$ 204,822						$ 353,975						$ 163,049						$ 71,842						$ 216,148
Commercial						132,950						265,869						142,173						57,360						114,930
Industrial						138,786						458,420						49,180						7,602						138,733
Governmental						4,433						21,223						14,061						19,167						6,977
Total billed retail						480,991						1,099,487						368,463						155,971						476,788
Sales for resale (a)						43,842						80,823						21,260						8,575						3,015
Other electric revenues (b)						81,733						74,670						50,718						12,811						39,224
Revenues from contracts with customers						606,566						1,254,980						440,441						177,357						519,027
Other revenues (c)						2,232						6,464						2,453						1,307						50
Electric revenues						608,798						1,261,444						442,894						178,664						519,077
Natural gas revenues						—						14,680						—						20,677						—
Total operating revenues						$ 608,798						$ 1,276,124						$ 442,894						$ 199,341						$ 519,077

The Utility operating companies’ total revenues for the six months ended June 30, 2025 and 2024 were as follows:

2025						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$ 486,871						$ 786,531						$ 358,883						$ 138,969						$ 433,086
Commercial						273,085						570,116						282,925						105,755						223,223
Industrial						323,620						1,036,010						100,974						13,454						245,962
Governmental						9,130						45,290						28,234						37,185						13,602
Total billed retail						1,092,706						2,437,947						771,016						295,363						915,873
Sales for resale (a)						121,262						220,791						89,810						13,917						7,590
Other electric revenues (b)						94,884						113,861						53,538						13,214						50,057
Revenues from contracts with customers						1,308,852						2,772,599						914,364						322,494						973,520
Other revenues (c)						2,346						( 5,149 )						1,220						212						60
Electric revenues						1,311,198						2,767,450						915,584						322,706						973,580
Natural gas revenues						—						44,160						—						68,349						—
Total operating revenues						$ 1,311,198						$ 2,811,610						$ 915,584						$ 391,055						$ 973,580

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2024						Entergy Arkansas						Entergy Louisiana						Entergy Mississippi						Entergy New Orleans						Entergy Texas
						(In Thousands)
Residential						$ 480,574						$ 699,003						$ 341,666						$ 139,520						$ 419,414
Commercial						274,258						522,565						274,491						110,585						223,234
Industrial						288,193						880,017						95,607						14,580						263,282
Governmental						9,133						43,044						27,390						37,521						14,084
Total billed retail						1,052,158						2,144,629						739,154						302,206						920,014
Sales for resale (a)						82,807						163,551						69,193						21,075						4,922
Other electric revenues (b)						91,074						112,615						44,516						9,592						38,736
Revenues from contracts with customers						1,226,039						2,420,795						852,863						332,873						963,672
Other revenues (c)						4,804						13,442						4,887						2,732						( 104 )
Electric revenues						1,230,843						2,434,237						857,750						335,605						963,568
Natural gas revenues						—						44,327						—						56,697						—
Total operating revenues						$ 1,230,843						$ 2,478,564						$ 857,750						$ 392,302						$ 963,568

(a) Sales for resale includes day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments and includes them as part of customer revenues.

(b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market, unbilled revenue, and certain customer credits as directed by regulators.

(c) Other Utility revenues include the occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees.

(d) Other revenues include the sale of electric power and capacity to wholesale customers, day-ahead sales of energy in a market administered by an ISO, and operation and management services fees.

Natural Gas Distribution Businesses

See Note 14 to the financial statements in the Form 10-K for information regarding the planned sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses. The following are updates to that discussion.

On October 28, 2023, Entergy New Orleans and Entergy Louisiana each entered into separate purchase and sale agreements with respect to the sale of their respective regulated natural gas local distribution company businesses to two separate affiliates of Bernhard Capital Partners Management LP. Under the purchase and sale agreements, Entergy New Orleans agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of Orleans, Louisiana, and Entergy Louisiana agreed to sell its regulated natural gas local distribution company business that serves customers in the Parish of East Baton Rouge, Louisiana. The Entergy New Orleans and Entergy Louisiana natural gas distribution businesses are reflected in Entergy’s Utility reportable segment and in the respective single reportable segment for each of Entergy New Orleans and Entergy Louisiana through June 30, 2025.

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Required regulatory approval was received from the LPSC and the City Council in August 2024 and December 2024, respectively. In February 2025 the Metropolitan Council of the Parish of East Baton Rouge approved the proposed sale of the Entergy Louisiana natural gas distribution business and also approved the assignment of the parish franchise from Entergy Louisiana to Delta Capital Gas Company, LLC (a Bernhard Capital Partners Management LP affiliate).

The transactions had two phases: (1) an “Initial Phase” prior to regulatory approvals in connection with both transactions; and (2) a “Second Phase” following regulatory approvals in connection with both transactions to the extent that certain conditions were satisfied or, where permissible, waived for both transactions. As described above, the transactions received all required regulatory approvals, and the Second Phase commenced on March 5, 2025.

The Entergy Louisiana and Entergy New Orleans natural gas distribution businesses first met the criteria to be classified as held for sale in the quarter ended December 31, 2024, and continued to meet such criteria as of June 30, 2025. As of June 30, 2025, neither Entergy Louisiana nor Entergy New Orleans had recognized any write downs of the natural gas distribution business assets as a result of their classification as held for sale, as neither sale was expected to result in a loss. The assets and liabilities of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses classified as held for sale on Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated balance sheets as of June 30, 2025 and December 31, 2024 included the following amounts:

						June 30, 2025																		December 31, 2024
						Entergy						Entergy Louisiana						Entergy New Orleans						Entergy						Entergy Louisiana						Entergy New Orleans
						(In Thousands)																		(In Thousands)
Deferred fuel						$ 5,829						$ 3,324						$ 2,505						$ 5,608						$ 727						$ 4,881
Fuel inventory - at average cost						4,828						295						4,533						4,493						702						3,791
Materials and supplies						7,604						1,172						6,432						5,451						1,045						4,406
Prepayments and other						1,341						54						1,287						22						—						22
Total current assets held for sale						$ 19,602						$ 4,845						$ 14,757						$ 15,574						$ 2,474						$ 13,100
Property, plant, and equipment - natural gas						$ 697,812						$ 311,898						$ 385,914						$ 679,502						$ 303,193						$ 376,309
Construction work in progress						2,710						1,730						980						2,959						1,085						1,874
Less - accumulated depreciation and amortization						( 283,404 )						( 141,818 )						( 141,586 )						( 276,388 )						( 139,556 )						( 136,832 )
Other regulatory assets						33,523						6,936						23,667						35,381						8,947						23,682
Goodwill (a)						6,517						—						—						6,474						—						—
Pension and other postretirement assets						15,171						—						19,952						14,663						—						19,499
Other						199						—						199						206						—						206
Total non-current assets held for sale						$ 472,528						$ 178,746						$ 289,126						$ 462,797						$ 173,669						$ 284,738
Accounts payable						$ 2,945						$ 295						$ 2,650						$ 702						$ 702						$ —
Customer deposits						5,327						2,572						2,755						6,214						1,984						4,230
Taxes accrued						—						—						—						13						13						—
Other						1,352						536						816						1,401						589						812
Total current liabilities held for sale (b)						$ 9,624						$ 3,403						$ 6,221						$ 8,330						$ 3,288						$ 5,042
Regulatory liability for income taxes - net						$ 28,438						$ 3,193						$ 25,245						$ 31,575						$ 4,981						$ 26,594
Other regulatory liabilities						2,579						945						1,634						1,611						1,214						397
Pension and other postretirement liabilities						4,236						4,643						1,610						3,976						4,525						1,197
Other						4,146						1,414						2,732						3,844						1,194						2,650
Total non-current liabilities held for sale (c)						$ 39,399						$ 10,195						$ 31,221						$ 41,006						$ 11,914						$ 30,838

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(a)    Goodwill was allocated to the natural gas distribution business based on its relative fair value compared to the retained portion of the reporting unit.

(b)    Included within other current liabilities on the respective consolidated balance sheets.

(c)    Included within other non-current liabilities on the respective consolidated balance sheets.

Entergy Louisiana and Entergy New Orleans continued to recognize depreciation on the natural gas distribution businesses assets through June 30, 2025 since they received revenues through utility customer rates through the closing of the transaction, and because the final purchase price for the natural gas distribution businesses was adjusted by an amount equal to that depreciation, among other adjustments.

The pre-tax income for the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses, excluding interest and corporate allocations, included in Entergy’s, Entergy Louisiana’s, and Entergy New Orleans’s consolidated income statements for the three and six months ended June 30, 2025 and 2024 is as follows:

						Three Months Ended												Six Months Ended
						2025						2024						2025						2024
						(In Thousands)												(In Thousands)
Entergy						$ 9,484						$ 7,527						$ 31,500						$ 27,459
Entergy Louisiana						$ 2,272						$ 2,754						$ 12,047						$ 12,858
Entergy New Orleans						$ 7,212						$ 4,773						$ 19,453						$ 14,601

On July 1, 2025, Entergy Louisiana and Entergy New Orleans completed the sale of their natural gas distribution businesses. The Entergy Louisiana natural gas distribution business was sold for a purchase price of $ 203 million and results in an expected gain of $ 12 million ($ 9 million net-of-tax), net of $ 20 million in transaction costs. The Entergy New Orleans natural gas distribution business was sold for a purchase price of $ 288 million and results in an expected gain of $ 5 million ($ 4 million net-of-tax), net of $ 19 million in transaction costs. The sale of the natural gas distribution businesses results in an expected gain of $ 11 million ($ 6 million net-of-tax) for Entergy, which includes goodwill of $ 7 million that was attributed to the businesses sold and derecognized following the completion of the sale. Entergy New Orleans deferred $ 4 million of its respective gain as a regulatory liability, which will be amortized over three years beginning September 2026, to be shared with electric utility customers, as required by the City Council. The sale price is subject to a true-up related to the estimated value of assets and liabilities transferred, which may result in subsequent adjustments to the gain recorded in third quarter 2025. Additionally, as a result of the sale, in third quarter 2025, Entergy New Orleans expects to write-off $ 12 million of natural gas plant assets that were not included in the sale to Delta Capital Gas Company, LLC, and which will not be recovered. See Note 10 to the financial statements herein for discussion of the tax accounting effects of the sale.

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No director or officer of Entergy or any of the Registrant Subsidiaries adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” during the three months ended June 30, 2025.

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