ENTERGY ARKANSAS, LLC

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

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

Vidalia Purchased Power Agreement

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

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.

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.

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 and the Availability Agreement.

Exclusivity Agreement with Major Vendor

See Note 8 to the financial statements in the Form 10-K for information regarding Entergy’s exclusivity agreement with a major vendor. The following is an update to that discussion.

As discussed in the Form 10-K, 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 was amended in second quarter 2026, updating the minimum order commitment of PIE to 27 sets, with no change to the original commitment of a minimum order oftwo CTs. As of September 30, 2026,10 sets of PIE andtwo CT slots of the minimum commitment have been fulfilled.

Entergy Texas Build-to-Suit Lease Arrangement for the Legend Power Station

See Note 8 to the financial statements in the Form 10-K for information regarding the Entergy Texas build-to-suit lease arrangement for the Legend Power Station.

Entergy Louisiana Build-to-Suit Lease Arrangement for the Waterford 6 Power Station

In October 2026, Entergy Louisiana entered a build-to-suit lease arrangement for the Waterford 6 Power Station as the lessee with a consortium of investors (the Investors). Under the terms of the arrangement, the Investors purchased the in-process Waterford 6 Power Station construction project from Entergy Louisiana at a cost of $167.5 million and will spend up to $1.875 billion (including the initial purchase price) to construct the Waterford 6 project as designed by Entergy Louisiana. Entergy Louisiana is engaged to serve as the construction agent for the Waterford 6 Power Station project. The Investors, however, control the asset during construction. If Entergy Louisiana defaults in its role as construction agent, the Investors have various options available to remedy the default, including the replacement of Entergy Louisiana as construction agent, the acceleration of the lease balance payable by Entergy Louisiana, causing a sale of the Waterford 6 Power Station project to a third party, and certain other options. If the LPSC rejects the Waterford 6 Power Station project or certain other circumstances occur that are outside of Entergy Louisiana’s control, then either the Investors or Entergy Louisiana could exercise the right to terminate the arrangement, in which case Entergy Louisiana would be required to purchase the in-process Waterford 6 Power Station project from the Investors at an amount equal to their costs incurred to date, including carrying costs. Because Entergy Louisiana does not control the in-process construction project, it will not recognize the asset (i.e., construction work in progress) or an associated liability during construction.

Upon the Waterford 6 Power Station’s readiness for first synchronization to the grid, expected in late 2029, a triple-net lease will commence under which Entergy Louisiana will have control of the Waterford 6 Power Station and receive all output from the plant. The initial term of the lease will endseven years from the closing of the arrangement, or approximately four years after the Waterford 6 Power Station’s expected readiness for first synchronization to the grid. The lease cost will be equal to the Secured Overnight Financing Rate plus a margin which is based on the credit rating of Entergy Louisiana, multiplied by the total costs (including carrying costs) incurred by the Investors as of the commencement of the lease. Entergy Louisiana will have the option to purchase the Waterford 6 Power Station at any time during the lease term at a price equal to the total cost of the plant to the Investors, plus any fees and carrying charges owed to the Investors. If the purchase price option is exercised withintwo years of commencement of the triple-net lease, Entergy Louisiana must enter into a secured note payable to the Investors for the amount of the purchase price. The note payable would be due at the end of the initial lease term, but may be prepaid at any time beginningtwo years after the commencement date of the lease. The note will be secured by the Waterford 6 Power Station and related equipment and collateral.

At the end of the initial lease term, Entergy Louisiana must exercise one of the following options: (1) renew the lease for an additional five year term, subject to unanimous consent of the Investors; (2) purchase the plant at a price equal to the total cost of the plant to Investors, plus any fees and carrying charges owed to the Investors; or (3)

sell the plant on behalf of the Investors. If Entergy Louisiana chooses the third option, then it will owe or be owed any difference between the total cost of the plant to Investors and the sale price.

NOTE 2. RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Regulatory Assets and Regulatory Liabilities

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

Energy Cost Recovery Rider

In March 2026, 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 $0.01333 per kWh to $0.01508 per kWh. The primary reason for the rate increase was an under-recovered balance as a result of higher natural gas prices in 2025. Based on circumstances related to ANO 2’s refueling outage, Entergy Arkansas made an adjustment to projected energy costs to phase-in the rate increase gradually. The redetermined rate of $0.01508 per kWh became effective with the first billing cycle in April 2026 through the normal operation of the tariff.

As discussed in the Form 10-K, in March 2020 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2016 through 2019. The LPSC staff issued its audit report in September 2021, and although certain internal record keeping recommendations were made, the LPSC staff did not recommend any disallowances. In October 2026 the LPSC staff and Entergy Louisiana filed a joint audit report addressing the issues identified in the LPSC staff’s September 2021 audit report and stating that there were no unresolved issues. The LPSC voted to approve the joint audit report at its October 2026 Business and Executive Session.

As discussed in the Form 10-K, in June 2025 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings (for Entergy Louisiana’s gas operations). The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from January 2023 through June 2025. The LPSC staff issued its audit report in March 2026. In October 2026 the LPSC staff and Entergy Louisiana filed a joint audit report. The joint audit report noted that an issue identified in its March 2026 report had been addressed and that, as a result, there were no outstanding unresolved issues. The joint audit report recommended and requested that an LPSC order be issued finding that all costs included in Entergy Louisiana’s purchased gas adjustment filings in the audit period were reasonable, prudent, and necessary and in compliance with applicable LPSC orders, and thus were appropriately eligible for recovery from customers. The LPSC voted to approve the joint audit report at its October 2026 Business and Executive Session.

In February 2026, Entergy Louisiana, in its monthly filing to update its fuel adjustment clause, requested to defer approximately $141.9 million of fuel costs incurred in January 2026 that were primarily attributable to the effects of Winter Storm Fern, consistent with the LPSC’s general order approved at its February 2026 meeting permitting temporary modifications to the LPSC’s fuel adjustment clause general order. The filing proposed to defer the recovery of these fuel costs over afour-month period from March 2026 through June 2026 to mitigate the customer bill impacts of these fuel costs. In March 2026 the LPSC issued a special order delegating authority to the LPSC executive secretary to review and approve utility-specific requests for deferral of fuel costs from Winter Storm Fern, subject to audit as per the LPSC’s fuel clause general order. In April 2026 the LPSC executive secretary approved Entergy Louisiana’s request for deferral.

In April 2026 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2023 through 2025. Discovery is ongoing, and no audit report has been filed.

Entergy Texas

In September 2026, Entergy Texas filed an application with the PUCT to reconcile its fuel and purchased power costs for the period from April 2024 through March 2026. During the reconciliation period, Entergy Texas incurred approximately $1.2 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 over-recovery balance for the reconciliation period was approximately $90.1 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 2026.

Capacity Cost Recovery Rider (CCRR)

In May 2026, Entergy Texas filed with the PUCT a request to establish a new CCRR. The new CCRR was designed to collect approximately $58 million annually from Entergy Texas’s retail customers based on Entergy Texas’s eligible capacity-related costs and revenues for the 12 months beginning June 1, 2026. The eligible capacity-related costs and revenues are associated with Entergy Texas’s participation in MISO’s annual planning resource auction. In July 2026 the PUCT approved the CCRR, consistent with Entergy Texas’s as-filed request, and rates became effective on July 10, 2026.

Frontier Power Purchase Agreement

In June 2026, Entergy Texas filed an application for PUCT pre-approval of a long-term 14-year PPA for 300 MW of capacity and energy from the Tenaska Frontier Generating Station, an 830 MW natural gas-fired combined-cycle combustion turbine plant in Grimes County, Texas. As a result of accelerated load growth in Texas and other factors in Entergy Texas’s service territory, Entergy Texas has a significant near- and long-term need for capacity and energy to serve its customers. Within the application, Entergy Texas requested the PUCT find that the PPA will satisfy Entergy Texas’s identified reliability needs in allowing for cost recovery of the associated purchased power. The 14-year PPA has a total estimated cost of $883 million. In September 2026 the ALJ with the State Office of Administrative Hearings adopted a procedural schedule with a hearing on the merits scheduled in October 2026. In October 2026, Entergy Texas filed on behalf of the parties a joint motion to abate the procedural schedule noting that the parties had reached a settlement in principle and the ALJ with the State Office of Administrative Hearings approved the joint motion to allow the parties time to finalize the 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)

2026 Base Rate Case

In February 2026, Entergy Arkansas filed with the APSC a general change in rates, charges, and tariffs. The filing requested a base rate increase to recover a base rate revenue deficiency of $44.6 million and notified the APSC of Entergy Arkansas’s intent to implement a forward test year formula rate plan pursuant to Arkansas legislation passed in 2015. The primary drivers of the revenue deficiency were increased depreciation expense and the impact of net capital additions. Additionally, the filing requested a 9.90% return on common equity and increased depreciation rates as the result of a depreciation study. In March 2026 the APSC issued an order suspending the proposed rates and tariffs filed by Entergy Arkansas. In June 2026 the APSC established a procedural schedule with an evidentiary hearing scheduled to begin in November 2026, and in July 2026 a number of intervenors moved to modify the schedule to conduct additional discovery. Entergy Arkansas opposed the motion in part based on the voluminous discovery conducted to date. In August 2026 the APSC general staff and intervenors filed responsive testimony recommending rate reductions comprised primarily of adjustments to the return on common equity, capital structure, depreciation, working capital, vegetation management, and incentive compensation. In September 2026, Entergy Arkansas filed rebuttal testimony addressing each of the proposed adjustments and supporting its update to actuals, made in accordance with APSC rules, resulting in a reduced base rate revenue deficiency of $28.6 million. In October 2026 the APSC general staff and intervenors filed their last round of testimony, and Entergy Arkansas filed its final round of responsive testimony, which included a revised base rate revenue deficiency of $28.9 million. Also in October 2026, Entergy Arkansas, the APSC general staff, and an intervenor filed a joint motion with the APSC requesting approval of a settlement agreement in the base rate case proceeding. The settlement agreement proposes, among other items: (1) no change in retail revenues as a result of a settlement base rate revenue deficiency ofzero; (2) an authorized return on common equity of 9.7%; (3) a capital structure of 47.5% equity and 52.5% debt; and (4) adjustments to depreciation rates reflecting changes to the useful lives of certain assets and net salvage curves. In addition, the settlement includes an acceleration of an estimated credit to customers, resulting from the netting adjustment for the 2026 historical year. That netting adjustment would normally be provided as part of the 2027 evaluation report and included in rates effective January 1, 2028. The settlement proposes that the credit would be included in formula rate plan rates beginning January 1, 2027. Following the filing of the October 2026 joint motion with the APSC, the APSC issued an order clarifying that, because the settlement agreement is not unanimous, the hearing currently scheduled for November 2026 will not be conducted solely as a settlement hearing and directing Entergy Arkansas to file additional information to allow the APSC to fully evaluate the settlement agreement.

In July 2026, Entergy Arkansas filed with the APSC its 2026 formula rate plan filing to set its formula rate for the 2027 calendar year. The filing contained an evaluation of Entergy Arkansas’s earnings and a netting adjustment for the 2025 historical year. The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2025 historical year was 8.8%, resulting in a $47.2 million formula rate plan revenue increase to produce a 9.65% earned rate of return on common equity. When combined with 2025 historical year formula rate plan revenues of $56.0 million, the total proposed revenue change for the 2025 historical year netting adjustment is a reduction of $8.8 million. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to afour percent annual revenue constraint. Entergy Arkansas’s revenue requirement in this filing did not exceed the constraint. In second quarter 2026, Entergy Arkansas recorded a regulatory liability of $8.8 million to reflect the amount of the 2025 historical year netting adjustment that it collected from customers during the 2025 rate effective period. In October 2026, Entergy Arkansas and the APSC staff filed a joint motion requesting to cancel the hearing scheduled for November 2026, and, as there are no contested issues between the parties to the proceeding, requesting the APSC decide this matter consistent with the pleadings and testimony in the record.

Generating Arkansas Jobs Act Rider

In March 2026, Entergy Arkansas filed its first annual update to the Generating Arkansas Jobs Act rider, requesting recovery of $110.4 million of financing costs during construction of generation and transmission strategic investments related to Ironwood Power Station, Jefferson Power Station, and the Arkansas Cypress Solar facility. The revised rates were requested to be effective with the first billing cycle of June 2026. In April 2026 the APSC general staff filed testimony arguing that the APSC had not issued an order designating Ironwood Power Station as a strategic investment and that related costs should therefore be removed from the annual update. Also in April 2026, Entergy Arkansas filed testimony asserting that the APSC general staff’s position is contrary to the plain language of the statute, which includes an exception for facilities like Ironwood Power Station that were certified by the APSC within a certain timeframe. A hearing was held in April 2026. In June 2026 the APSC approved Entergy Arkansas’s annual update, and rates became effective June 4, 2026.

Production Tax Credit Tariffs

As discussed in Note 3 to the financial statements in the Form 10-K, in January 2026 the APSC opened a docket to investigate the sale of Entergy Arkansas’s nuclear production tax credits and the appropriate ratemaking treatment of production tax credits for all of Entergy Arkansas’s eligible resources, including how the proceeds of any sales should flow through to customers. For nuclear production tax credits, Entergy Arkansas proposed a nuclear production tax credit rider, which would provide for the immediate flow through to customers of the weighted average cost of capital return on the net proceeds of the monetized nuclear production tax credits. Recognizing that the timing and determination from the IRS is uncertain, the nuclear production tax credit rider also proposes that, if there is an unfavorable IRS determination, Entergy Arkansas would collect applicable costs from customers. As directed by the APSC, in February 2026, Entergy Arkansas submitted a compliance filing to the APSC verifying the status of the solar production tax credits. The filing also verified that the net proceeds from the sale of the nuclear production tax credits were recorded in FERC accounts that are accruing a return for customers’ benefit at a rate that is above the customer deposit rate. Subsequently, in March 2026, Entergy Arkansas filed testimony setting forth its proposal for the solar production tax credits. Specifically, Entergy Arkansas requested the same ratemaking treatment for all of the solar facilities that the APSC already approved for Walnut Bend (i.e., the total net monetized proceeds from production tax credits expected to be generated over the firstten years of a solar facility’s operation are estimated and then amortized over the expected useful life of the asset, which is typically 30 years). Additionally, consistent with prior orders for these resources, the regulatory liabilities associated with the net cash proceeds from monetized solar production tax credits will be included in Entergy Arkansas’s calculation of its weighted average cost of capital providing a return on the unamortized balance for the benefit of customers. Further, Entergy Arkansas proposes to flow the benefits of the solar production tax credits to customers through Entergy Arkansas’s formula rate plan, effective with the formula rate plan rates that will go into effect January 1, 2027. Entergy Arkansas’s proposal would result in the benefits of the production tax credits being passed through to customers, if approved, as reductions in revenue requirement evenly over the life of the assets, rather than only during the 10-year period in which the production tax credits are generated. In April 2026 the APSC general staff filed testimony proposing an amortization period of no more than 15 years for the monetized proceeds for the tax credits associated with the West Memphis Solar and Driver Solar facilities. An evidentiary hearing was initiated in July 2026 and completed in August 2026.

Special Rate Contract and Arkansas Cypress Solar

As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking approval of a long-term special rate contract between Altitude Capital, LLC, a subsidiary of Alphabet Inc. (Google) and Entergy Arkansas for the sale of electricity to a new large-scale data center in West Memphis, Arkansas. In December 2025 the APSC issued an order approving the special rate contract but denying the requested ratemaking treatment of Google’s upfront payments and deferring a decision on the treatment under the contract pricing providing for the deferral and amortization of the investment tax credits from the Arkansas Cypress Solar facility (discussed below). Also in December 2025, Entergy Arkansas filed a petition with the APSC regarding these findings, noting that they would require renegotiation of the special rate contract. In January 2026 the APSC issued an order maintaining its position on the ratemaking treatment of Google’s upfront payments but reversing itself on the treatment of the Arkansas Cypress Solar facility investment tax credits and allowing those to be used in the pricing of the Arkansas Cypress Solar facility to Google as provided for in the contract. In October 2026, Entergy Arkansas filed for approval of an amendment to the special rate contract regarding the expansion and acceleration of Google’s project in West Memphis. Subject to APSC approval, investments proposed under the amended contract included a 250 MW battery energy storage system to be located at the Driver Solar facility in Mississippi County, Arkansas (Driver Solar battery energy storage system), a 100 MW battery energy storage system to be located adjacent to the existing Arklahoma substation near the in-progress Ironwood Power Station in Hot Spring County, Arkansas (Jones Mill battery energy storage system), a 440 MW solar power purchase agreement from the Big Island Solar facility, and related transmission upgrades and facilities. A procedural schedule has been set with a hearing scheduled for January 2027.

As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. The estimated cost of the project is $1,602 million. In March 2026 the APSC approved the Arkansas Cypress Solar facility and Entergy Arkansas’s recovery of the costs of the facility through the Generating Arkansas Jobs Act rider. The APSC also ordered implementation of an independent monitor to oversee costs. In April 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of costs. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s independent monitor proposals for three pending resources, including the Arkansas Cypress Solar facility, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties, and the APSC approved Entergy Arkansas’s independent monitor proposal in September 2026. The facility is expected to be in service by the end of 2028.

In October 2026, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Driver Solar battery energy storage system and the Jones Mill battery energy storage system. The battery energy storage systems are being developed to help support the expansion and acceleration of Google’s project in West Memphis. The estimated cost of the Driver Solar battery energy storage system is $389.4 million, and the estimated cost of the Jones Mill battery energy storage system is $161.2 million. Pending receipt of APSC approval, each battery energy storage system is expected to be in service in 2028.

Filings with the LPSC (Entergy Louisiana)

Resilience Plan Cost Recovery Rider

In December 2022, Entergy Louisiana filed an application with the LPSC seeking a public interest finding regarding Phase I of Entergy Louisiana’s Future Ready resilience plan and approval of a rider mechanism to recover the program’s costs. Phase I in the December 2022 application reflected the first five years of aten-year resilience plan and included investment of approximately $5 billion, including hardening investment, transmission dead-end structures, enhanced vegetation management, and telecommunications improvement. In April 2024 the LPSC approved a framework which includes an initial five-year resilience plan providing for an investment of approximately $1.9 billion with cost recovery via a forward-looking rider with semi-annual true-ups. The plan is subject to specified reporting requirements and includes a performance review of the hardened assets. The LPSC order approving the framework does not include any restrictions on Entergy Louisiana’s ability to file applications for approval of additional investments in resilience.

In January 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $40.4 million, or $38.9 million in incremental annual revenues from Entergy Louisiana’s first semi-annual filing in July 2024, for projects expected to be placed in service during the rate-effective period of March 2025 through August 2025. In February 2025 the LPSC staff reviewed the filed rider rates and identified no material issues.

In July 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $50.2 million, or $9.8 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2025 through February 2026. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $5.6 million to be implemented in the January 2026 semi-annual filing. In August 2025 the LPSC staff reviewed the filed rider rates and identified no material issues.

In January 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $101.8 million, or $51.6 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of March 2026 through August 2026. Additionally, Entergy Louisiana’s true-up filing included an over-recovery totaling $16.6 million to be implemented in the July 2026 semi-annual filing. In February 2026 the LPSC staff reviewed the filed rider rates and identified no material issues.

In July 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $114.2 million, or $12.4 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2026 through February 2027. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $2.5 million to be implemented in the January 2027 semi-annual filing. In August 2026 the LPSC staff reviewed the filed rider rates and identified no material issues.

In September 2026, Entergy Louisiana filed an application for the LPSC’s approval of Phase IA of Entergy Louisiana’s Future Ready resilience plan, which consists of additional distribution and transmission hardening projects representing approximately $600 million of investment to be completed over the period 2027 to 2030. The application seeks LPSC approval to extend the previously-approved Phase I of Entergy Louisiana’s Future Ready resilience plan with these additional projects to further improve the resilience of Entergy Louisiana’s electric system and further seeks approval to continue to use the resilience plan cost recovery rider to recover the costs of the plan from customers. The primary purpose of Phase IA is to serve as a bridge between Phase I, which is currently expected to conclude by 2028, and a Phase II plan, which Entergy Louisiana expects to develop in accordance with guidance from the LPSC that is expected to be issued in the LPSC’s ongoing resiliency rulemaking docket. Discovery is ongoing. In October 2026 a procedural schedule was established that provides for a hearing in June 2027. Entergy Louisiana has requested an LPSC decision by July 2027.

Vegetation Management Rider

In November 2025 the LPSC staff issued notice of its initiation of a rulemaking to implement a vegetation management pilot program for LPSC jurisdictional electric utilities. The pilot program would be voluntary and would allow utilities to establish a rider for distribution vegetation management for up to 100% of the utility’s prior calendar year vegetation management spending. The rider may not exceed 1% of a customer’s bill, and the utility would be required to maintain its prior calendar year level of spending on vegetation management as reflected in its base rates or formula rate plan. In February 2026 the LPSC staff filed a report and recommendation along with a proposed final rule providing for the adoption of the pilot program consistent with the terms outlined in the original notice. In March 2026 the LPSC voted to accept the LPSC staff’s recommendation and adopt the proposed pilot program as presented. In April 2026, Entergy Louisiana filed its vegetation management rider for the rate-effective period of May 2026 through December 2026, which included a revenue requirement of $20 million for incremental spending on distribution vegetation management above the prior calendar year level of spending on vegetation management.

2025 Formula Rate Plan Filing

In June 2026, Entergy Louisiana filed its formula rate plan evaluation report for its 2025 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, the filing reflected a 9.7% allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the test year 2025, the formula produced an earned return on equity of 9.63%, which falls within the established bandwidth and therefore results inno adjustment to base rider formula rate plan revenue.

Additional changes in formula rate plan revenue include: (1) the removal of approximately $73 million in annual customer credits associated with the global stipulated settlement agreement, which have been fully credited to customers in accordance with the agreement; (2) a reduction in customer credits through the tax adjustment mechanism, attributable to the return of Entergy Louisiana’s over-collection of income tax expense associated with Louisiana state tax law changes effective in 2025 and the expiration of certain ad valorem exemptions; (3) increases in transmission and distribution plant in service, as recognized through the transmission and distribution recovery mechanisms, including restoration costs from Winter Storm Fern, for which Entergy Louisiana does not intend to seek relief or exception to the formula rate plan; (4) increases to the additional capacity mechanism; and (5) the final phase-in of additional nuclear depreciation expense, in accordance with the global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Collectively, these factors contributed to a net increase of $222 million in formula rate plan revenue for the period. In August 2026 the LPSC staff filed its errors and objections report. The report did not identify any specific errors, objections, or adjustments. However, the LPSC staff reserved its rights with respect to three issues pending further review: (1) the allocation between Entergy Louisiana and Entergy Texas of River Bend’s undepreciated plant balances, costs, and related liabilities; (2) certain projects included in the transmission recovery mechanism filing; and (3) the use of a blended retail/FERC depreciation rate for River Bend depreciation expense. Subject to LPSC review, the resulting changes from the 2025 formula rate plan evaluation report became effective for bills rendered during the first billing cycle of September 2026, subject to refund.

In June 2026, Entergy Louisiana submitted a motion requesting the LPSC approve aone-year extension of its current formula rate plan, with all material provisions left unchanged, including the allowed return on common equity of 9.7% with a bandwidth of 40 basis points above and below the midpoint. LPSC action on the proposed extension is expected by November 2026.

River Bend Deregulated Asset Plan Filing

In September 2025, Entergy Louisiana filed an application seeking LPSC approval to recover from customers, prospectively, approximately $49 million in annual revenues associated with the Louisiana retail deregulated portion of River Bend. Costs associated with the deregulated portion of River Bend have historically been excluded from retail ratemaking as a result of a 1988 LPSC decision. Instead, Entergy Louisiana has been allowed by the LPSC to either recover 4.6 cents per kWh for the power generated from that portion of the plant, or sell the power into the applicable market (subject to certain restrictions). The filing presents evidence that River Bend is a cost-effective and prudent source of needed baseload supply with value to Entergy Louisiana customers and seeks to recover the previously excluded costs, on a prospective basis. In March 2026 the LPSC staff and certain intervenors filed direct testimony recommending that the LPSC deny Entergy Louisiana’s application. The LPSC staff’s testimony further recommends that, if the LPSC were to grant any relief, notwithstanding the LPSC staff’s recommendation, such relief should be limited to allowing only prospective capital additions at River Bend to be included in Entergy Louisiana’s customer rates. Entergy Louisiana filed rebuttal testimony in August 2026. In October 2026, Entergy Louisiana filed a motion requesting to suspend all remaining procedural deadlines without date, noting the significant number of dockets currently pending before the LPSC, including many initiated by Entergy Louisiana, and the need for thorough review of these matters. In October 2026 the presiding ALJ issued an order granting the motion and suspending the procedural schedule, including continuing the hearing in the matter without date.

Filings with the MPSC (Entergy Mississippi)

In February 2026, Entergy Mississippi submitted its formula rate plan 2026 test year filing and 2025 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2025 calendar year to be within the formula rate plan bandwidth and projected earned return for the 2026 calendar year to also be within the formula rate plan bandwidth. The 2026 test year filing resulted in an earned return on rate base of 7.64% and reflectedno change in formula rate plan revenues. The 2025 look-back filing compared actual 2025 results to the approved benchmark return on rate base and reflectedno change in formula rate plan revenues, although Entergy Mississippi proposed to adjust interim rates by $293 thousand to reflect one outside-the-bandwidth change, a true-up of demand side management costs.

In June 2026, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a joint stipulation that confirmed the 2026 test year filing, with the exception of immaterial adjustments to certain operations and maintenance expenses. The formula rate plan reflected an earned return on rate base of 7.68% for calendar year 2026, resu lting inno change in formula rate plan revenues for 2026. Pursuant to the stipulation, Entergy Mississippi’s 2025 look-back filing reflected an earned return on rate base of 8.10%, which also resulted inno change in formula rate plan revenues for 2025. In addition, the stipulation included the recovery of the outside-the-bandwidth change discussed above as well as the ratemaking treatment of certain customer contributions, the mechanism for recovery of the benefits of nuclear production tax credits, and the realignment of the first project from the interim facilities rate adjustment to the formula rate plan. In June 2026 the MPSC approved the joint stipulation with rates effective in July 2026. See Note 10 to the financial statements herein for further discussion of the mechanism for recovery of the benefits of nuclear production tax credits included in the joint stipulation.

Filings with the City Council (Entergy New Orleans)

In April 2026, Entergy New Orleans submitted to the City Council its formula rate plan 2025 test year filing. The 2025 evaluation report produced an earned return on equity of 7.55% compared to the authorized return on equity of 9.35%. Without adjustments, this would result in an increase in rates of $16.6 million. The increase in rates is driven, in part, by an increase in plant in service, as well as the cost of known and measurable capital additions. The increase is also driven by a decrease in total revenues due to a decline in kWh sales. The filing is subject to a 75-day review and discovery period followed by a 25-day period to resolve any disputes among the parties.

In July 2026 the City Council’s advisors issued a report seeking a reduction in Entergy New Orleans’s requested formula rate plan revenues of approximately $4.4 million due to certain proposed cost realignments, imputation of revenues, and disallowances. The City Council’s advisors also recommended that Entergy New Orleans be permitted to collect $20 million over five years beginning in September 2026 to recover amounts that it might be required to pay Entergy Louisiana and Entergy Arkansas pursuant to a FERC order issued in June 2026, relating to an alleged MSS-4 replacement tariff (MSS-4R) violation. However, the FERC order is unclear on its face, and the specific amount of a payment, if any, is unknown. Requests for rehearing and clarification of the FERC order are pending. See “MSS-4 Replacement Tariff - Net Operating Loss Carryforward Proceeding” below for additional discussion of the FERC order. Subsequent to the original recommendation from the City Council’s advisors regarding the FERC order, Entergy New Orleans reached a resolution with the City Council’s advisors, and the original proposed $20 million amount was reduced to $10 million over five years. Effective with the first billing cycle of September 2026, Entergy New Orleans implemented rates reflecting a formula rate plan increase of $13.8 million, as agreed upon by Entergy New Orleans and the City Council, per the approved process for formula rate plan implementation. Moreover, with respect to the FERC order, in October 2026 the City Council passed a resolution directing Entergy New Orleans to collect $2.3 million for year one, beginning in September 2026 from customers in anticipation of surcharge obligations resulting from the FERC order, to be collected outside the bandwidth. Until either the FERC determines or it is otherwise agreed that Entergy New Orleans must pay a surcharge, amounts collected from customers beginning September 2026 in anticipation of surcharge obligations resulting from the FERC order are being recorded as a regulatory liability. If the FERC determines or it is otherwise agreed that Entergy New Orleans must pay a surcharge, Entergy New Orleans will record a regulatory asset for the remaining uncollected balance, with carrying costs, including credit balances reflecting collections from customers that commenced in September 2026. If the FERC determines or it is otherwise agreed that Entergy New Orleans is owed payments, Entergy New Orleans will cease collecting amounts from customers beginning with the next base rate action and will return collected amounts to customers, including carrying costs.

In July 2026, Entergy New Orleans submitted a motion requesting the City Council’s approval of afour-year extension of its current formula rate plan, with all material provisions left unchanged. In October 2026 the City Council approved Entergy New Orleans’s motion, authorizing the extension of Entergy New Orleans’s electric formula rate plan for test years 2026 through 2029.

Resilience and Storm Hardening Cost Recovery Rider Adjustment to the Formula Rate Plan

In October 2024 the City Council approved a rider mechanism for Entergy New Orleans to recover the costs of certain approved accelerated resilience projects to be constructed by Entergy New Orleans in 2025 and 2026. The rider allows for recovery of project costs through a formula rate plan rate adjustment. As required by the rider, in November 2024, Entergy New Orleans filed the first of its compliance filings, seeking a rate adjustment increase of approximately $1.1 million, and the increase in formula rate plan rates became effective in the first billing cycle of January 2025 in accordance with the terms of the rider. In October 2025, Entergy New Orleans made its second compliance filing, seeking a rate adjustment increase of approximately $11.8 million, and the increase in formula rate plan rates became effective in the first billing cycle of January 2026.

Filings with the PUCT and Texas Cities (Entergy Texas)

Distribution Cost Recovery Factor (DCRF) Rider

In April 2026, 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 $112.5 million annually, or $20.4 million in incremental annual revenues beyond Entergy Texas’s then-effective DCRF rider based on its capital invested in distribution between July 1, 2025 and December 31, 2025. In July 2026 the PUCT approved the DCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after July 8, 2026.

In September 2026, Entergy Texas filed with the PUCT a request to amend its DCRF rider. The proposed rider is designed to collect from Entergy Texas’s retail customers approximately $127.3 million annually, or $14.8 million in incremental annual revenues beyond Entergy Texas’s currently effective DCRF rider based on its capital invested in distribution between January 1, 2026 and June 30, 2026. In September 2026 the ALJ with the State Office of Administrative Hearings adopted a procedural schedule requiring the PUCT staff to file a recommendation on the merits of Entergy Texas’s application by November 2, 2026.

Transmission Cost Recovery Factor (TCRF) Rider

As discussed in the Form 10-K, in October 2025, Entergy Texas filed with the PUCT a request to amend its TCRF rider. The amended rider was designed to collect from Entergy Texas’s retail customers approximately $30.3 million annually, or $20.6 million in incremental annual revenues beyond Entergy Texas’s then-effective TCRF rider based on its capital invested in transmission between July 1, 2024 and June 30, 2025 and changes in other transmission charges. In April 2026 the PUCT approved the TCRF rider, consistent with Entergy Texas’s as-filed request, and rates became effective for usage on and after April 6, 2026.

In October 2026, Entergy Texas filed with the PUCT a request to amend its TCRF rider. The proposed rider is designed to collect from Entergy Texas’s retail customers approximately $56.7 million annually, or $26.4 million in incremental annual revenues beyond Entergy Texas’s currently effective TCRF rider based on its capital invested in transmission between July 1, 2025 and June 30, 2026 and changes in other transmission charges.

Generation Cost Recovery Rider

In March 2026, Entergy Texas filed an application to establish a generation cost recovery rider to begin recovering a return of and on its capital investment in the Orange County Advanced Power Station. The proposed generation cost recovery rider, which includes Entergy Texas’s capital invested in generation for the Orange County Advanced Power Station through December 31, 2025, was designed to collect approximately $150.4 million annually from Entergy Texas’s retail customers. In July 2026 the ALJ with the State Office of Administrative Hearings approved aproposed procedural schedule that included a hearing on the merits in September 2026 and provided for interim rates to become effective for usage on and after the Orange County Advanced Power Station in-service date, to the extent final rates were not in place by that time. In September 2026, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a joint motion to abate the procedural schedule and cancel the hearing on the merits to give the parties to the proceeding additional time to finalize a settlement. Interim rates became effective when the Orange County Advanced Power Station was placed into service in October 2026. Also in October 2026, Entergy Texas filed an unopposed stipulation resolving all issues in case, supporting testimony, a joint motion to adjust the interim rates previously implemented to correspond to the stipulated revenue requirement, and a joint motion to admit evidence and remand the proceeding to the PUCT. The unopposed stipulation would result in no disallowance of recoverable investment but would reduce the annual revenue requirement collected through the generation cost recovery rider by $5.7 million while the rider remains in effect. The PUCT is expected to issue a final order on the settlement by the end of 2026.

Entergy Arkansas Opportunity Sales Proceeding

See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding.

Complaints Against System Energy

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

Unit Power Sales Agreement

See Note 2 to the financial statements in the Form 10-K for discussion of the Unit Power Sales Agreement. The following is an update to that discussion.

Pension Costs Amendment Proceeding

As discussed in the Form 10-K, in October 2021, System Energy submitted to the FERC proposed amendments to the Unit Power Sales Agreement to include in rate base the prepaid and accrued pension costs associated with System Energy’s qualified pension plans. In November 2025 the FERC issued an order approving System Energy’s proposed prepaid and accrued pension recovery mechanism. System Energy has been utilizing this methodology in billings since December 1, 2022 and will continue to utilize it going forward. As a result of the FERC’s order, System Energy did not owe any refunds. In December 2025 the APSC filed a request for rehearing of the November 2025 order. In January 2026 the FERC denied the APSC’s rehearing request by operation of law. In May 2026 the FERC issued a follow-up substantive order denying the APSC’s rehearing and sustaining its finding that no refunds are owed.

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-4R net operating loss carryforward proceeding. The following is an update to that discussion.

As discussed in the Form 10-K, in October 2021 the LPSC filed a complaint with the FERC alleging that Entergy Services improperly excluded net operating loss carryforward accumulated deferred income taxes (NOLC ADIT) from MSS-4R rates in the period before March 20, 2021. The LPSC argued that sales from Entergy Louisiana to Entergy Texas and Entergy New Orleans were charged at rates lower than they otherwise should have been, and it accordingly seeks surcharges for the period prior to March 20, 2021. The FERC set the complaint for hearing procedures and subsequently the hearing for this complaint proceeding was consolidated with the hearing procedures for Entergy Services’ January 2021 NOLC ADIT filing.

Testimony was filed by parties in 2023, and the hearing before a FERC ALJ was concluded in February 2024. In June 2024, the FERC ALJ issued an initial decision addressing three major issues: (1) whether Entergy Services’ proposed prospective inclusion and allocation of NOLC ADIT in MSS-4R rates using a modified with-and-without methodology is just and reasonable; (2) whether Entergy Services correctly calculated excess and deficient accumulated deferred income taxes in accordance with the terms of a prior settlement; and (3) whether NOLC ADIT should have been included in MSS-4R rates prior to the effective date of the January 2021 MSS-4R filing.

With respect to issues (1) and (2), the presiding ALJ concluded that Entergy Services’ proposed methodology for allocating and including NOLC ADIT in MSS-4R rates was just and reasonable and that Entergy Services correctly performed the excess and deficient accumulated deferred income taxes calculations. With respect to issue (3), however, the presiding ALJ agreed with the LPSC that NOLC ADIT should have been included in MSS-4R rates since September 1, 2016, and as a result, the presiding ALJ ordered that Entergy Louisiana and Entergy Arkansas recalculate bills for the period of September 1, 2016 through November 11, 2023 with surcharges expected to be due to those operating companies from the purchasing operating companies, Entergy New Orleans, Entergy Texas, and Entergy Louisiana (for some Entergy Arkansas sales). The presiding ALJ also ordered Entergy Services to pay the interest owed to Entergy Louisiana on these surcharges.

The surcharge methodology that the presiding ALJ recommended in connection with issue (3) was not supported by any participant in the hearing. As part of their exceptions to the initial decision, all parties to the proceeding opposed the use of the ALJ’s methodology, except for the FERC trial staff, which took no position. During the hearing, the LPSC and the FERC trial staff advocated that the alleged tariff violation should be remedied by the application of Entergy Services’ January 2021 proposed methodology. All other parties, including the PUCT, the City Council, and Entergy Services, opposed any surcharges for the period prior to the March 20, 2021 effective date of the January 2021 filing.

Entergy Services disputed the presiding ALJ's rulings on issue (3) and filed exceptions to these rulings in July 2024. In June 2026 the FERC issued its opinion (Opinion No. 595) largely affirming the initial decision. Specifically, the FERC found the historic exclusion of NOLC ADIT from MSS-4R rates was a tariff violation and ordered Entergy Louisiana and Entergy Arkansas to provide refunds and/or surcharges, as appropriate, for the period from September 1, 2016 through November 12, 2023 for sales by Entergy Louisiana and for the period December 19, 2013 until May 13, 2024 for sales by Entergy Arkansas. The FERC also ordered the relevant operating company to pay interest on the amounts owed.

In July 2026, Entergy Services, the LPSC, the City Council, and the PUCT, filed separately for rehearing and clarification of Opinion No. 595. Entergy Services continues to dispute that the NOLC ADIT should have been included in MSS-4R rates prior to the effective date of the tariff amendment filing. Moreover, because of ambiguity in Opinion No. 595 and the pending rehearing and clarification requests, it is unclear whether Entergy Arkansas and Entergy Louisiana as sellers will receive surcharges or have to provide refunds. Specifically, there is a lack of clarity as to whether plant-related liability accumulated deferred income taxes must be included in calculating refunds/surcharges. Entergy Services also identified a lack of clarity regarding including the nuclear decommissioning liability deduction in the NOLC ADIT calculation. Depending on the guidance issued by the FERC in response to the request for rehearing and clarification of Opinion No. 595, each of the affected Entergy operating companies could either receive material refunds or owe material surcharges. In August 2026 the FERC granted Entergy Services’s motion to delay the payment and compliance filing until 60 days after the FERC’s issuance of an order in response to the requests for rehearing and/or clarification of Opinion No. 595. Also in August 2026 the FERC issued notice that the requests for rehearing have been denied by operation of law and may be addressed in a future order. In September 2026, Entergy Services filed with the D.C. Circuit a petition for review of Opinion No. 595. Given the ambiguity in Opinion No. 595, any amounts payable or receivable between the Entergy operating companies that may result from Opinion No. 595 are not reasonably estimable as of September 30, 2026.

MSS-4 Replacement Tariff – River Bend 70 Depreciation LPSC Complaint

In May 2026 the LPSC filed a complaint with the FERC alleging that Entergy Texas owes surcharges to Entergy Louisiana because the depreciation rates used in the MSS-4R for the River Bend 70 sales of capacity and energy were based on a directive of the PUCT for the period from September 1, 2016 to December 31, 2025. The LPSC quantifies the potential surcharge as $100 million, inclusive of interest. Entergy Services disputes that any surcharges are due from Entergy Texas to Entergy Louisiana. In June 2026, Entergy Services filed a motion to dismiss and answer to the complaint submitted by the LPSC.

Joint Targeted Interconnection Queue Cost Allocation Dispute

In April 2026, MISO submitted to the FERC an unexecuted agreement proposing to assign to Entergy Texas (in its capacity as the owner of the Legend Power Station) costs associated with the MISO and Southwest Power Pool Joint Targeted Interconnection Queue. Entergy Texas estimates that MISO’s proposed cost assignment would result in total charges of approximately $112 million, paid over twenty years beginning in 2031. In May 2026, Entergy Texas filed a protest to the agreement, as well as a separate complaint at the FERC, arguing that the proposed cost allocation is not just and reasonable. In June 2026 the FERC issued a deficiency notice to MISO. In

July 2026, MISO and Southwest Power Pool filed answers to the complaint, and MISO filed an answer to the deficiency letter. Protests and comments in response to MISO’s answer to the deficiency letter were filed in August 2026. In September 2026 the FERC issued a second deficiency letter to MISO. MISO’s response to the second deficiency letter was filed in October 2026. Protests and comments in response to MISO’s answer to the second deficiency letter are due in November 2026.

In August 2026, MISO submitted to the FERC an unexecuted agreement proposing to assign to Entergy Texas (in its capacity as the owner of the Lone Star Power Station) costs associated with the MISO and Southwest Power Pool Joint Targeted Interconnection Queue. Entergy Texas estimates that MISO’s proposed cost assignment would result in total charges of approximately $70 million, paid over twenty years beginning in 2031. In September 2026, Entergy Texas filed a protest to the agreement, as well as a separate complaint at the FERC, arguing that the proposed cost allocation is not just and reasonable. Answers and comments in response to Entergy Texas’s complaint are due in November 2026.

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 Mississippi

In January 2026, Entergy Mississippi’s service territory experienced the effects of Winter Storm Fern, including prolonged freezing temperatures, heavy ice accumulations, and wind, which caused severe damage to Entergy Mississippi’s infrastructure. Following Winter Storm Fern, the “Mississippi 2026 Severe Winter Storm Electric Utility Customer Relief and Electric Utility System Restoration Act” was enacted by the Mississippi Legislature in April 2026. This legislation provides that the MPSC may issue an electric utility financing order authorizing the issuance of system restoration bonds, the proceeds of which shall be used to securitize the system restoration costs and storm damage reserve levels of those utilities affected by Winter Storm Fern. The legislation requires that an electric utility affected by the storm must first petition the MPSC for such a financing order that complies with the requirements outlined in the legislation. The legislation states that any system restoration bonds issued under a financing order will not be considered debt of the electric utility. These bonds will only be secured by the system restoration property specified in the financing order.

In October 2026, Entergy Mississippi filed a petition with the MPSC requesting an electric utility financing order authorizing the Mississippi State Bond Commission to act as the issuing agent for the State of Mississippi to issue system restoration bonds, the proceeds of which would be used by Entergy Mississippi to securitize approximately $237.8 million in total Winter Storm Fern system restoration costs, consisting of $145.7 million in non-fuel system restoration costs, $65.0 million in incremental fuel costs attributable to Winter Storm Fern, $7.6 million in retired damaged assets, $14.3 million in carrying costs estimated through the date of bond issuance, and $5.2 million in bond issuance costs and financing costs. Within the petition, Entergy Mississippi also requested that the MPSC find that the non-fuel system restoration costs and incremental fuel costs attributable to Winter Storm Fern were prudently incurred. The MPSC is expected to rule on the petition in December 2026.

NOTE 3. EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations for the three and nine months ended September 30, 2026 and 2025, included on the consolidated income statements:

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 293,562 stock options outstanding for the three months ended September 30, 2026 and 366,136 stock options outstanding for the three months ended September 30, 2025 because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 264,617 stock options outstanding for the nine months ended September 30, 2026 and 325,454 stock options outstanding for the nine months ended September 30, 2025 because their effect would have been antidilutive. Until settlement of the forward sale agreements discussed in Note 7 to the financial statements in the Form 10-K and 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 19,247,788 shares for the three months ended September 30, 2026 and 94,446 shares for the three months ended September 30, 2025 under forward sale agreements outstanding because their effect would have been antidilutive. The calculation of diluted earnings per share excluded 6,415,929 shares for the nine months ended September 30, 2026 and 901,408 shares for the nine months ended September 30, 2025 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 $0.64 for the three months ended September 30, 2026 and $0.60 for the three months ended September 30, 2025. Dividends declared per common share were $1.92 for the nine months ended September 30, 2026 and $1.80 for the nine months ended September 30, 2025.

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.

The aggregate number of shares of common stock sold under the equity distribution sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $4.5 billion. As of September 30, 2026, an aggregate gross sales price of approximately $2.8 billion has been sold under the at the market equity distribution program.

During the nine months ended September 30, 2026, Entergy Corporation physically settled its obligations under the following forward sale agreements:

Entergy Corporation incurred an aggregate amount of approximately $0.5 million of general issuance costs associated with the February 2026 settlement and an aggregate amount of approximately $0.3 million of general issuance costs associated with the June 2026 settlement. Entergy Corporation used the net proceeds for general corporate purposes including the repayment of commercial paper.

Equity Forward Sale Agreements

See Note 7 to the financial statements in the Form 10-K for discussion of Entergy Corporation’s equity forward sale agreements. The following are updates to that discussion.

In May 2026, Entergy Corporation marketed an equity offering of approximately 19.2 million shares of Entergy Corporation common stock. In lieu of issuing equity at the time of the offering, Entergy Corporation 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 Corporation to, at its election on or prior to April 30, 2028, either (1) physically settle the transactions by issuing the total of approximately 19.2 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 $110.74 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.

During the nine months ended September 30, 2026, Entergy Corporation physically settled its obligations under the following forward sale agreements:

Entergy Corporation incurred approximately $0.3 million of common stock issuance costs associated with the June 2026 settlement and an aggregate amount of approximately $0.5 million associated with the September 2026 settlement. Entergy Corporation used the net proceeds for general corporate purposes including the repayment of commercial paper.

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 Corporation’s common stock is higher than the average forward sale price.

Treasury Stock

During the nine months ended September 30, 2026, Entergy Corporation reissued 1,013,630 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the nine months ended September 30, 2026.

Retained Earnings

On October 30, 2026, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.68 per share, payable on December 1, 2026 to holders of record as of November 13, 2026.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended September 30, 2026 and 2025:

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the nine months ended September 30, 2026 and 2025:

The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the three months ended September 30, 2026 and 2025:

The following table presents changes in accumulated other comprehensive income for Entergy Louisiana for the nine months ended September 30, 2026 and 2025:

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) for Entergy for the three months ended September 30, 2026 and 2025 are as follows:

(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 (loss) (AOCI) for Entergy for the nine months ended September 30, 2026 and 2025 are as follows:

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

Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the three months ended September 30, 2026 and 2025 are as follows:

(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.

Total reclassifications out of accumulated other comprehensive income (AOCI) for Entergy Louisiana for the nine months ended September 30, 2026 and 2025 are as follows:

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

NOTE 4. REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2031. 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. Although there wereno borrowings under the facility for the nine months ended September 30, 2026, the estimated interest rate as of September 30, 2026 that would have been applied to outstanding borrowings under the facility was 5.40%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of September 30, 2026:

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

Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion. As of September 30, 2026, Entergy Corporation had $105 million of commercial paper outstanding. The weighted-average interest rate for the nine months ended September 30, 2026 was 4.05%.

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of September 30, 2026 as follows:

(a)The interest rate is the estimated interest rate as of September 30, 2026 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. The following is a summary of the uncommitted standby letter of credit facilities as of September 30, 2026:

(a)As of September 30, 2026, letters of credit posted with MISO covered financial transmission rights exposure of $3.2 million for Entergy Louisiana; $0.5 million for Entergy New Orleans; and $1.0 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights.

(b)As of September 30, 2026, the letters of credit issued for Entergy Louisiana under this facility include $43.1 million in MISO letters of credit and $20.0 million in non-MISO letters of credit outstanding.

(c)As of September 30, 2026, the letters of credit issued for Entergy Mississippi under this facility include $63.4 million in MISO letters of credit and $1.3 million in non-MISO letters of credit outstanding.

The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. As of September 30, 2026, the FERC-authorized short-term borrowing limits for Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy were effective through January 2027, and the FERC-authorized short-term borrowing limit for Entergy Arkansas was effective through February 2028. In October 2026, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy received FERC-authorized short-term borrowing limits effective from November 2026 through October 2028. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of September 30, 2026 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:

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, three of which previously provided for the issuance of commercial paper until such provisions relating to commercial paper were terminated in June 2026. The following is a summary of the nuclear fuel company VIE credit facilities as of September 30, 2026:

The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy nuclear fuel company 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.

The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of September 30, 2026 as follows:

In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ debt arrangements, which currently include their credit facilities and long-term notes payable, is reported in fuel expense.

As of September 30, 2026, Entergy Louisiana and System Energy each had financing authorization from the FERC that extended through January 2027 for issuances by its nuclear fuel company VIEs, and Entergy Arkansas had financing authorization from the FERC that extended through February 2028 for issuances by its nuclear fuel company VIE. In October 2026, Entergy Arkansas, Entergy Louisiana, and System Energy obtained financing authorizations from the FERC that extend through October 2028.

Debt Issuances and Retirements

(Entergy Corporation)

In August 2026, Entergy Corporation issued $750 million of junior subordinated debentures due December 2056 (Series 2026A junior subordinated debentures) and $750 million of junior subordinated debentures due December 2058 (Series 2026B junior subordinated debentures). Entergy Corporation will pay interest at an annual rate of 6.500% through December 14, 2036 for the Series 2026A junior subordinated debentures and through December 14, 2033 for the Series 2026B junior subordinated debentures. Commencing on December 15, 2036 for the Series 2026A junior subordinated debentures and on December 15, 2033 for the Series 2026B junior subordinated debentures, the annual rate will equal the five-year treasury rate as of the most recent reset interest determination date plus 1.877% for the Series 2026A junior subordinated debentures and 2.030% for the 2026B junior subordinated debentures. Entergy Corporation used the proceeds to repay a portion of its outstanding commercial paper, to repay, at maturity, its $750 million of 2.95% senior notes due September 2026, and for general corporate purposes.

(Entergy Arkansas)

In January 2026, Entergy Arkansas issued $500 million of 4.95% Series mortgage bonds due January 2036 and $500 million of 5.75% Series mortgage bonds due January 2056. Entergy Arkansas used the proceeds, together with other funds, to repay, prior to maturity, its $600 million of 3.5% Series mortgage bonds due April 2026. Entergy Arkansas expects to use the remaining proceeds, together with other funds, to finance a portion of the construction of generation projects, including the Ironwood Power Station and the Arkansas Cypress Solar facility, and for general corporate purposes.

In July 2026 the Entergy Arkansas nuclear fuel company VIE issued $120 million of 5.28% Series P intermediate term secured notes due July 2031. The Entergy Arkansas nuclear fuel company VIE used the proceeds to repay, at maturity, its $90 million of 1.84% Series N intermediate term secured notes due July 2026 and expects to use the remaining funds to purchase additional nuclear fuel.

(Entergy Louisiana)

In January 2026, Entergy Louisiana redeemed, at maturity, $250 million of 4.44% Series mortgage bonds.

In February 2026, Entergy Louisiana issued $750 million of 4.90% Series mortgage bonds due April 2036 and $750 million of 5.65% Series mortgage bonds due April 2056. Entergy Louisiana has used or expects to use the proceeds, together with other funds, to finance construction of the Franklin Farms Power Station Units 1 and 2 project, the Waterford 5 Power Station project, and the Westlake Power Station project, to support storm restoration costs related to Winter Storm Fern, and for general corporate purposes.

In August 2026, Entergy Louisiana issued $500 million of 5.50% Series mortgage bonds due September 2036 and $500 million of 6.20% Series mortgage bonds due September 2056. Entergy Louisiana has used or expects to use the proceeds to finance construction of a portion or all of its capital plan, including the construction of any or all of the Richland Parish Units 1-4 project, the Pointe Coupee Units 1-3 project, the Waterford 5 Power Station project, the Franklin Farms Power Station Units 1 and 2 project, the Amite South transmission projects, the Westlake Power Station project, and battery energy storage systems, to repay, at maturity, its outstanding $400 million of 2.40% Series mortgage bonds due October 2026, and for general corporate purposes.

In September 2026, the Entergy Louisiana Waterford nuclear fuel company VIE issued $90 million of 5.28% Series K intermediate term secured notes due September 2031. The Entergy Louisiana Waterford nuclear fuel company VIE used the proceeds to repay, at maturity, its $70 million of 5.94% Series J intermediate term secured notes due September 2026 and expects to use the remaining funds to purchase additional nuclear fuel.

(Entergy Mississippi)

In March 2026, Entergy Mississippi issued $650 million of 5.05% Series mortgage bonds due April 2036. Entergy Mississippi has used or expects to use the proceeds, together with other funds, to finance construction of the Traceview Advanced Power Station and Vicksburg Advanced Power Station, to finance, on an interim basis, storm restoration costs related to Winter Storm Fern, and for general corporate purposes.

(Entergy New Orleans)

In May 2026, Entergy New Orleans issued $35 million of 5.91% Series mortgage bonds due June 2036 and $55 million of 6.65% Series mortgage bonds due June 2056. Entergy New Orleans used the proceeds to repay, at maturity, its $85 million of 4% Series mortgage bonds due June 2026 and for general corporate purposes.

(Entergy Texas)

In May 2026, Entergy Texas issued $425 million of 5.20% Series mortgage bonds due June 2036. Entergy Texas has used or expects to use the proceeds, together with other funds, to finance construction of the Orange County Advanced Power Station and the Lone Star Power Station, to repay, at maturity, its $130 million of 1.50% Series mortgage bonds due September 2026, and for general corporate purposes.

Fair Value

The book value and the fair value of long-term debt for Entergy and the Registrant Subsidiaries as of September 30, 2026 were as follows:

(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, 2025 were as follows:

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

NOTE 5. STOCK-BASED COMPENSATION (Entergy Corporation)

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

Stock Options

In January 2026 the Board approved and Entergy granted long-term incentive awards in the form of options on 298,829 shares of its common stock under the 2019 Omnibus Incentive Plan with a fair value of $20.81 per option. As of September 30, 2026, there were options on 2,971,677 shares of common stock outstanding with a weighted-average exercise price of $60.47. The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of September 30, 2026. The aggregate intrinsic value of the stock options outstanding as of September 30, 2026 was $115.3 million.

The following table includes financial information for stock options for the three and nine months ended September 30, 2026 and 2025:

Other Equity Awards

In January 2026 the Board approved and Entergy granted long-term incentive awards in the form of 461,708 restricted stock awards,20,954 restricted stock units, and 195,692 performance units under the 2019 Omnibus Incentive Plan. The restricted stock awards and restricted stock units were made effective on January 29, 2026, and were valued at $96.03 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 thethree-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date. The restricted stock units do not have voting rights and are not considered issued and outstanding shares of Entergy prior to vesting. One-third of the restricted stock units will vest upon each anniversary of the grant date and are paid in the form of shares of Entergy Corporation’s common stock. Dividend equivalents accrue on the restricted stock units and are converted to additional restricted stock units, which are subject to the same vesting schedule as the underlying restricted stock units. The restricted stock units are expensed ratably over thethree-year vesting period.

The performance units represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of thethree-year performance period, plus dividends accrued during the performance period on the number of performance units earned. For the 2026-2028 performance period, performance will be measured based eighty percent on relative total shareholder return, ten percent on an environmental stewardship achievement measure, andten percent on a reliability achievement measure. The performance units were granted on January 29, 2026 andeighty percent were valued at $118.24 per share based on various factors, primarily market conditions; and both theten percent for the environmental stewardship achievement and theten percent for the reliability achievement were valued at $96.03 per share, the closing price of Entergy Corporation’s common stock on the grant date. Performance units do not have voting rights and are not considered issued and outstanding shares of Entergy prior to vesting. Performance units are expensed ratably over thethree-year vesting period, and compensation cost for the portion of the award based on the environmental stewardship achievement measure and the reliability 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 and nine months ended September 30, 2026 and 2025:

NOTE 6. RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified net pension costs, including amounts capitalized, for the third quarters of 2026 and 2025, included the following components:

Entergy’s qualified net pension costs, including amounts capitalized, for the nine months ended September 30, 2026 and 2025, included the following components:

The Registrant Subsidiaries’ qualified net pension costs, including amounts capitalized, for their current and former employees for the third quarters of 2026 and 2025, included the following components:

The Registrant Subsidiaries’ qualified net pension costs, including amounts capitalized, for their current and former employees for the nine months ended September 30, 2026 and 2025, included the following components:

Non-Qualified Net Pension Cost

Entergy recognized $2.4 million and $6.1 million in pension cost for its non-qualified pension plans for the third quarters of 2026 and 2025, respectively. For the third quarter of 2026, there wereno settlement charges related to the payment of lump sum benefits out of the plan. Reflected in the pension cost for non-qualified pension plans in the third quarter of 2025 were settlement charges of $3.6 million related to the payment of lump sum benefits out of the plan. Entergy recognized $7.2 million and $11.1 million in pension cost for its non-qualified pension plans for the nine months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026, there wereno settlement charges related to the payment of lump sum benefits out of the plan. Reflected in the pension cost for non-qualified pension plans for the nine months ended September 30, 2025 were settlement charges of $3.6 million related to the payment of lump sum benefits out of the plan.

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the third quarters of 2026 and 2025:

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the nine months ended September 30, 2026 and 2025:

For the third quarter of 2026, there wereno settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the third quarter of 2025, there were settlement charges of $215 thousand for Entergy Mississippi included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2026, there wereno settlement charges for the Registrant Subsidiaries related to the payment of lump sum benefits out of the plan. For the nine months ended September 30, 2025, there were settlement charges of $215 thousand for Entergy Mississippi included in the non-qualified pension costs above related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefits Cost (Income)

Entergy’s net other postretirement benefits income, including amounts capitalized, for the third quarters of 2026 and 2025 included the following components:

Entergy’s net other postretirement benefits cost (income), including amounts capitalized, for the nine months ended September 30, 2026 and 2025 included the following components:

The Registrant Subsidiaries’ net other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the third quarters of 2026 and 2025 included the following components:

The Registrant Subsidiaries’ net other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the nine months ended September 30, 2026 and 2025 included the following components:

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the third quarters of 2026 and 2025:

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the nine months ended September 30, 2026 and 2025:

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. In addition, non-service benefit costs previously eligible for capitalization into property, plant, and equipment are being deferred to a regulatory asset/liability and will be amortized over the estimated lives of the respective assets.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $200 million to its qualified pension plans in 2026. As of September 30, 2026, Entergy had contributed $123.4 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 2026:

NOTE 7. BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and included operation of a small natural gas distribution business in portions of Louisiana through June 30, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business, which is an operating segment that does not meet the quantitative thresholds for determining reportable segments.

The following table includes operating revenues and significant expense categories regularly provided to the chief operating decision maker for the Utility segment, a reconciliation of Utility operating revenues to Entergy’s consolidated operating revenues, and a reconciliation of Utility net income to consolidated net income and net income attributable to Entergy Corporation for the three and nine months ended September 30, 2026 and 2025:

(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)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.

The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the three months ended September 30, 2026 and 2025:

The following table presents segment financial information for Entergy’s single reportable segment, Utility, and a reconciliation to the corresponding consolidated amounts for Entergy Corporation for the nine months ended September 30, 2026 and 2025:

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

Registrant Subsidiaries

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each hasone operating and reportable segment, an integrated utility business which includes the generation, transmission, and distribution of electric power; and included operation of a small natural gas distribution business at each of Entergy Louisiana and Entergy New Orleans through June 30, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. System Energy hasone 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.

NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Market Risk

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

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.

In 2025, Entergy Texas entered into interest rate swaps, accounted for as derivatives, to manage interest rate risks associated with Entergy Texas’s build-to-suit lease arrangement for the Legend Power Station. See Note 8 to the financial statements in the Form 10-K for further discussion of the build-to-suit lease arrangement for the Legend Power Station. These interest rate swaps are not designated as hedging instruments. Interest will be calculated as the sum of the Secured Overnight Financing Rate plus the blended spreads per the build-to-suit lease arrangement, compounded monthly, with one cash settlement per year over the approximatetwo year construction period. The notional volume of the hedge was calculated based on the expected costs for the Legend Power Station at the time Entergy Texas entered into the interest rate swaps. Changes in the fair value of these interest rate swaps are recognized each period, with gains and losses deferred as a regulatory asset or liability. The interest rate swaps run through January 31, 2028. The total notional volume is up to $1.1 billion for Entergy Texas as of September 30, 2026. Credit support for the swaps are covered by master agreements that do not require Entergy Texas to provide collateral based on mark-to-market values.

Entergy manages fuel price volatility for Entergy Louisiana and Entergy Mississippi through the purchase of natural gas swaps that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi. The maximum length of time over which Entergy has executed natural gas swaps as of September 30, 2026 is 4.6 years for Entergy Louisiana and 6 months for Entergy Mississippi. The total volume of natural gas swaps outstanding as of September 30, 2026 is 26,101,900 MMBtu for Entergy, including 18,421,000 MMBtu for Entergy Louisiana and 7,680,900 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. Prior to the sale of the Entergy New Orleans natural gas distribution business, Entergy also managed fuel price volatility related to projected winter purchases for gas distribution at Entergy New Orleans through the purchase of natural gas swaps. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025.

During the second quarter 2026, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2026 through May 31, 2027. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by the non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of September 30, 2026 is 94,397 GWh for Entergy, including 25,233 GWh for Entergy Arkansas,38,735 GWh for Entergy Louisiana,11,430 GWh for Entergy Mississippi,4,008 GWh for Entergy New Orleans, and 14,539 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. No cash was required to be posted for financial transmission rights exposure for the Utility operating companies as of September 30, 2026 and December 31, 2025. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Louisiana, Entergy New Orleans, and Entergy Texas as of September 30, 2026 and for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas as of December 31, 2025. Credit support for financial transmission rights held by Entergy’s non-utility operations business may also be covered by cash and/or letters of credit. No cash or letters of credit were required to be posted for financial transmission rights exposure for the non-utility operations business as of September 30, 2026 and December 31, 2025.

The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheets as of September 30, 2026 and December 31, 2025 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.

(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 $5 million as of September 30, 2026 and $2 million as of December 31, 2025

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended September 30, 2026 and 2025 are as follows:

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for nine months ended September 30, 2026 and 2025 are as follows:

(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and 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 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.

(c)Due to regulatory treatment, the changes in the estimated fair value of the interest rate swaps for Entergy Texas are recorded through interest expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as interest expense when the interest rate swaps for Entergy Texas are settled are expected to be recovered in ratemaking relating to the Legend

Power Station. See Note 8 to the financial statements in the Form 10-K for discussion of the build-to-suit lease arrangement for the Legend Power Station.

The fair values of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ balance sheets as of September 30, 2026 and December 31, 2025 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.

(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 $3.2 million for Entergy Louisiana, $0.5 million for Entergy New Orleans, and $1 million for Entergy Texas as of September 30, 2026 and in the amount of $0.1 million for Entergy Arkansas, $0.8 million for Entergy Louisiana, $0.8 million for Entergy Mississippi, and $0.1 million for Entergy Texas as of December 31, 2025

The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the three months ended September 30, 2026 and 2025 are as follows:

The effects of derivative instruments not designated as hedging instruments on the Registrant Subsidiaries’ income statements for the nine months ended September 30, 2026 and 2025 are as follows:

(a)Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and 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 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.

(c)Due to regulatory treatment, the changes in the estimated fair value of the interest rate swaps for Entergy Texas are recorded through interest expense and such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as interest expense when the interest rate swaps for Entergy Texas are settled are expected to be recovered in ratemaking relating to the Legend Power Station. See Note 8 to the financial statements in the Form 10-K for discussion of the build-to-suit lease arrangement for the Legend Power Station.

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 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, gas swaps, and interest rate swaps valued using observable inputs.

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

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

The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2026 and December 31, 2025. 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.

(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.

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2026 and 2025:

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2026 and 2025:

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

The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2026 and December 31, 2025. 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 Mississippi

Entergy New Orleans

Entergy Texas

System Energy

(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.

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2026.

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

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2026.

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

NOTE 9. DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

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

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

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2026 on equity securities still held as of September 30, 2026 were ($8) million and $339 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale debt securities held as of September 30, 2026 and December 31, 2025 are summarized as follows:

As of September 30, 2026 and December 31, 2025, there wereno deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $2,577 million as of September 30, 2026 and $2,219 million as of December 31, 2025. As of September 30, 2026, available-for-sale debt securities had an average coupon rate of approximately 4.33%, an average duration of approximately 6.13 years, and an average maturity of approximately 10.61 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2026 and December 31, 2025:

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2026 and 2025:

During the three and nine months ended September 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2026 and December 31, 2025 are summarized as follows:

The amortized cost of available-for-sale debt securities was $727.5 million as of September 30, 2026 and $620.7 million as of December 31, 2025. As of September 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 3.90%, an average duration of approximately 6.00 years, and an average maturity of approximately 8.30 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2026 on equity securities still held as of September 30, 2026 were ($7.0) million and $94.3 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.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2026 and December 31, 2025:

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2026 and 2025:

During the three and nine months ended September 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2026 and December 31, 2025 are summarized as follows:

The amortized cost of available-for-sale debt securities was $1,147.4 million as of September 30, 2026 and $994.6 million as of December 31, 2025. As of September 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 4.53%, an average duration of approximately 6.37 years, and an average maturity of approximately 11.70 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2026 on equity securities still held as of September 30, 2026 were $4.2 million and $151.9 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2026 and December 31, 2025:

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2026 and 2025:

During the three and nine months ended September 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale debt securities held as of September 30, 2026 and December 31, 2025 are summarized as follows:

The amortized cost of available-for-sale debt securities was $701.7 million as of September 30, 2026 and $603.7 million as of December 31, 2025. As of September 30, 2026, the available-for-sale debt securities had an average coupon rate of approximately 4.44%, an average duration of approximately 5.85 years, and an average maturity of approximately 11.24 years.

The unrealized gains/(losses) recognized during the three and nine months ended September 30, 2026 on equity securities still held as of September 30, 2026 were ($4.8) million and $93.1 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds that are designed to approximate or somewhat exceed the return of the Wilshire 4500 Index. The debt securities are generally held in individual government and credit issuances.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of September 30, 2026 and December 31, 2025:

The following table summarizes proceeds from the dispositions of available-for-sale debt securities and the related gains and losses from the sales during the three and nine months ended September 30, 2026 and 2025:

During the three and nine months ended September 30, 2026 and 2025, gross gains and gross losses related to available-for-sale debt securities were reclassified out of other regulatory liabilities/assets into earnings.

NOTE 10. INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See “Income Tax Audits” and “Other Tax Matters” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, the Inflation Reduction Act of 2022, and other income tax matters involving Entergy. The following are updates to that discussion.

Income Tax Audits

2019-2021 IRS Audit

Entergy and the Registrant Subsidiaries anticipate the resolution of the IRS audit of the 2019 through 2021 tax years and expect to record the effects of the adjustments associated with such audit by the end of 2026 or in early 2027. As discussed in Note 3 to the financial statements in the Form 10-K, the resolution of audit issues could result in significant changes to the amounts of unrecognized tax benefits. Entergy may file amended income tax returns for post-2021 tax years, as considered necessary, depending on the outcome of the 2019-2021 IRS audit.

Other Tax Matters

Inflation Reduction Act of 2022

In April 2026 the LPSC issued an order approving an agreement between Entergy Louisiana and the LPSC staff regarding the monetization of the 2025 nuclear production tax credits. The order allows Entergy Louisiana to retain the net proceeds of the monetized credits while the associated tax position remains uncertain. While retaining these proceeds, Entergy Louisiana will accrue carrying charges to its customers at its weighted average cost of capital. The order further provides that customers will be responsible for any associated costs should the IRS reduce some or all of the value of the nuclear production tax credits transferred to third parties. Once the IRS makes a final determination affirming the value of the credits or the audit period expires without a disallowance, Entergy Louisiana will commence flowing the net proceeds of the nuclear production tax credits, including carrying charges, to its customers. This treatment is consistent with the approach previously approved for the 2024 nuclear production tax credits, as discussed in Note 3 to the financial statements in the Form 10-K.

In June 2026, as part of Entergy Mississippi’s 2026 formula rate plan filing, the MPSC issued an order approving the joint stipulation between the Mississippi Public Utilities Staff and Entergy Mississippi that included, among other items, the mechanism for treatment of the monetization of past and future nuclear production tax credits. The order allows Entergy Mississippi to retain the net proceeds of the monetized credits while the associated tax position remains uncertain. While retaining these proceeds, Entergy Mississippi will accrue carrying charges at its average cost of debt, as determined by Entergy Mississippi’s debt rate in its current formula rate plan. The order further provides that Entergy Mississippi will be responsible for any associated costs should the IRS reduce some or all of the value of the nuclear production tax credits transferred to third parties. Once the IRS makes a final determination affirming the value of the credits or the audit period expires without a disallowance, Entergy Mississippi will commence flowing the net proceeds of the nuclear production tax credits, including carrying charges, to its customers in accordance with the return period to be determined by the MPSC. Carrying charges at Entergy Mississippi’s average cost of debt will only apply to the value of the credits that are allowed by the IRS. See Note 2 to the financial statements herein for discussion of Entergy Mississippi’s 2026 formula rate plan filing.

In second quarter 2026, Entergy Arkansas, Entergy Louisiana, and System Energy entered into agreements with third-party purchasers to transfer in the third and fourth quarters of 2026 certain nuclear and solar production tax credits for cash, including a reasonable discount, prior to the filing of Entergy’s 2025 federal income tax return.

In September 2026, Entergy Arkansas, Entergy Louisiana, and System Energy transferred the 2025 nuclear production tax credits to third parties and received cash of $99.2 million, $55.8 million, and $68.8 million, respectively, resulting in total Entergy cash receipts of $223.8 million. The proceeds from the transfers reflected a market-based discount. In accordance with the Unit Power Sales Agreement and the MSS-4 replacement tariff, portions of the net proceeds from the transfers of the nuclear production tax credits were paid by Entergy Arkansas, Entergy Louisiana, and System Energy to the buyers of energy and capacity under those wholesale agreements in October 2026. In addition, Entergy Arkansas transferred its 2025 solar production tax credits to a third party and received cash of approximately $32.1 million in October 2026. The monetized value of these solar production tax credits, net of applicable expenses, is expected to be addressed in retail rates in accordance with applicable regulatory mechanisms.

Arkansas Corporate Income Tax Rate Change

In May 2026 the State of Arkansas enacted a corporate income tax rate reduction from 4.3% to 4.1%, effective January 1, 2027. As a result of the rate reduction, Entergy Arkansas recorded a regulatory liability for income taxes of approximately $16 million. The regulatory liability includes both the excess deferred income taxes and the associated tax gross-up required under the retail and wholesale ratemaking formulas.

Amortization of Tax Gross-up on Customer Advances

Amortization of tax gross-up on customer advances, including customer advances for construction, was $43.5 million for Entergy, $7.0 million for Entergy Arkansas, $25.9 million for Entergy Louisiana, $9.1 million for Entergy Mississippi, and $1.5 million for Entergy Texas for the three months ended September 30, 2026 and $20.8 million for Entergy, $2.1 million for Entergy Arkansas, $14.8 million for Entergy Louisiana, $2.6 million for Entergy Mississippi, and $1.3 million for Entergy Texas for the three months ended September 30, 2025. Amortization of tax gross-up on customer advances, including customer advances for construction, was $106.7 million for Entergy, $11.2 million for Entergy Arkansas, $68.4 million for Entergy Louisiana, $24.9 million for Entergy Mississippi, and $2.2 million for Entergy Texas for the nine months ended September 30, 2026 and $45.4 million for Entergy, $3.4 million for Entergy Arkansas, $28.2 million for Entergy Louisiana, $10.2 million for Entergy Mississippi, and $3.6 million for Entergy Texas for the nine months ended September 30, 2025. Amortization of tax gross-up on customer advances is included in miscellaneous – net in other income on the income statement.

NOTE 11. VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

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

Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of September 30, 2026 and December 31, 2025, the primary asset held by the storm trust I was $2.5 billion and $2.7 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 $26.6 million as of September 30, 2026 and $27.1 million as of December 31, 2025.

Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of September 30, 2026 and December 31, 2025, the primary asset held by the storm trust II was $1.3 billion and $1.3 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 $13.5 million as of September 30, 2026 and $13.1 million as of December 31, 2025.

System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest in the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $17.2 million in each of the nine months ended September 30, 2026 and the nine months ended September 30, 2025.

AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of September 30, 2026, AR Searcy Partnership, LLC recorded assets equal to $121.1 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $110.3 million. As of December 31, 2025, AR Searcy Partnership, LLC recorded assets equal to $124.4 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $113.1 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Arkansas.

MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of September 30, 2026, MS Sunflower Partnership, LLC recorded assets equal to $149.3 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $132.5 million. As of December 31, 2025, MS Sunflower Partnership, LLC recorded assets equal to $154.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $134.9 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Mississippi.

NOTE 12. REVENUE (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended September 30, 2026 and 2025 were as follows:

Entergy’s total revenues for the nine months ended September 30, 2026 and 2025 were as follows:

The Utility operating companies’ total revenues for the three months ended September 30, 2026 and 2025 were as follows:

The Utility operating companies’ total revenues for the nine months ended September 30, 2026 and 2025 were as follows:

(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 the return on construction work in progress for certain utility plant investments, transmission and ancillary services provided to participants of an ISO-administered market, and unbilled revenue.

(c)Other Utility revenues include occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, late fees, and amounts resulting from other operating activities.

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

Electric Revenues

See Note 19 to the financial statements in the Form 10-K for a discussion of electric revenues. The following is an update to that discussion.

Most of Entergy’s contracts are on demand, with customer bills that vary each month based on an approved tariff and usage. Certain retail customers, primarily large industrial customers from various industries, have electric service agreements that include a fixed amount of consideration to be paid through the end of a contract term longer than one year. As of September 30, 2026, the amount of revenues related to this fixed consideration that Entergy expects to recognize over the remaining contract terms, extending through 2048, was $9,680 million for Entergy, including $4,702 million for Entergy Arkansas, $1,977 million for Entergy Louisiana, $2,553 million for Entergy Mississippi, and $448 million for Entergy Texas. These contracts also require variable payments based on the actual amount of energy service, which are recognized as revenue as Entergy has the right to bill the customer for services performed.

In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. Entergy’s business is subject to seasonal fluctuations, however, with peak periods occurring typically during the first and third quarters. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year.

Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk

See the “Market and Credit Risk Sensitive Instruments” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis.

Part I, Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of September 30, 2026 evaluations were performed under the supervision and with the participation of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy (each individually a “Registrant” and collectively the “Registrants”) management, including their respective Principal Executive Officers (PEO) and Principal Financial Officers (PFO). The evaluations assessed the effectiveness of the Registrants’ disclosure controls and procedures. Based on the evaluations, each PEO and PFO has concluded that, as to the Registrant or Registrants for which they serve as PEO or PFO, the Registrant’s or Registrants’ disclosure controls and procedures are effective to ensure that information required to be disclosed by each Registrant in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms; and that the Registrant’s or Registrants’ disclosure controls and procedures are also effective in reasonably assuring that such information is accumulated and communicated to the Registrant’s or Registrants’ management, including their respective PEOs and PFOs, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Under the supervision and with the participation of each Registrant’s management, including its respective PEO and PFO, each Registrant evaluated changes in internal control over financial reporting that occurred during the quarter ended September 30, 2026 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

ENTERGY ARKANSAS, LLC AND SUBSIDIARIES

See the “Winter Storm Fern” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern. Entergy Arkansas’s cost of mobilizing crews and restoring power was approximately $50 million, including approximately $40 million in capital costs and approximately $10 million in non-capital costs. Natural gas purchases for Entergy Arkansas were $74 million in January 2026 compared to $25 million in January 2025.

Net income increased $71.4 million primarily due to higher retail electric price and higher volume/weather, partially offset by higher other operation and maintenance expenses and higher interest expense.

Net income increased $53.8 million primarily due to higher retail electric price, higher volume/weather, and higher other income, partially offset by higher interest expense, higher other operation and maintenance expenses, and higher depreciation and amortization expenses.

Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the 2025 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the Generating Arkansas Jobs Act rider filing.

The volume/weather variance is primarily due to the effect of more favorable weather on residential and commercial sales and an increase in weather-adjusted residential usage.

Total electric energy sales for Entergy Arkansas for the three months ended September 30, 2026 and 2025 are as follows:

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

Entergy Arkansas’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the 2025 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the Generating Arkansas Jobs Act rider filing.

The volume/weather variance is primarily due to the effect of more favorable weather on residential and commercial sales and an increase in industrial usage, partially offset by a decrease in weather-adjusted commercial usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily primary metals customers.

Total electric energy sales for Entergy Arkansas for the nine months ended September 30, 2026 and 2025 are as follows:

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

•an increase of $5.1 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $3.7 million in non-nuclear generation expenses primarily due to a higher scope of work in 2026 as compared to 2025;

•an increase of $2.2 million in compensation and benefits costs primarily due tohigher healthcare claims activity; and

Taxes other than income taxes decreased primarily due to an increase in ad valorem tax accruals for the 2025 tax year as a result of updated tax rates received in third quarter 2025.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in FERC jurisdictional depreciation rates effective January 2026.

Entergy Arkansas records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income increased primarily due toan increase of $4.9 million in the amortization of tax gross-up on customer advances, including customer advances for construction.

Interest expense increased primarily due to the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026, and $4.2 million in carrying costs in third quarter 2026 on retained net proceeds from the monetization of nuclear production tax credits. The increase was partially offset by the repayment of $600 million of 3.5% Series mortgage bonds in February 2026.

•an increase of $22.5 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $8.9 million in compensation and benefits costs primarily due tohigher healthcare claims activity, the timing of the recognition of prescription drug rebates, and a larger revision to estimated incentive-based compensation expense in 2025;

•an increase of $4.5 million in non-nuclear generation expenses primarily due to a higher scope of work performed in 2026 as compared to 2025; and

•a decrease of $10.5 million in energy efficiency expenses primarily due to the timing of recovery from customers;

•a decrease of $5.4 million in insurance expense primarily due to higher nuclear insurance refunds; and

•a decrease of $5.1 million in loss provisions.

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in FERC jurisdictional depreciation rates effective January 2026.

Other regulatory charges (credits) - net includes a regulatory charge of $8.8 million, recorded in second quarter 2026, to reflect the amount of the 2025 historical year netting adjustment to be returned to Entergy Arkansas’s customers during the 2027 rate effective period as included in the 2026 formula rate plan filing. See Note 2 to the financial statements herein for discussion of the 2026 formula rate plan filing. In addition, Entergy Arkansas records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

•changes in decommissioning trust fund activity, including portfolio rebalancing of decommissioning trust funds in first quarter 2026;

•an increase of $8.3 million in interest earned on money pool investments; and

•an increase of $7.8 million in the amortization of tax gross-up on customer advances, including customer advances for construction.

•the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026;

•the issuance of $300 million of 5.45% Series mortgage bonds in May 2025; and

•$12.2 million in carrying costs in 2026 on retained net proceeds from the monetization of nuclear production tax credits.

The increase was partially offset by the repayment of $600 million of 3.5% Series mortgage bonds in February 2026.

The effective income tax rate was 22.3% for the third quarter 2026. The difference in the effective income tax rate for the third quarter 2026 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes as a result of tax rate changes and certain book and tax differences related to utility plant items.

The effective income tax rate was 20.5% for the nine months ended September 30, 2026. The difference in the effective income tax rate for the nine months ended September 30, 2026 versus the federal statutory rate of 21% was primarily due to the amortization of excess accumulated deferred income taxes as a result of tax rate changes and certain book and tax differences related to utility plant items, substantially offset by the accrual for state income taxes.

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

Net cash flow provided by operating activities decreased $134.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•the receipt of $99.2 million in proceeds from the transfer of 2025 nuclear production tax credits to third parties in 2026 as compared to the receipt of $160.2 million in proceeds from the transfer of 2024 nuclear and solar production tax credits to third parties in 2025. See Note 3 to the financial statements in the Form

10-K and Note 10 to the financial statements herein for discussion of the nuclear and solar production tax credits;

•higher ad valorem tax payments as a result of the timing of payments in 2026 as compared to 2025;

•an increase of $31.7 million in spending on nuclear refueling outage costs in 2026 as compared to 2025; and

•an increase of $22.1 million in interest paid.

The decrease was partially offset by:

•higher collections from customers;

•the receipt of $104.5 million in advance payments related to customer agreements in 2026, including $84.9 million in customer advances and $19.6 million in tax gross-up on customer advances for construction; and

•the timing of payments to vendors.

Net cash flow used in investing activities increased $400.1 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•an increase of $538 million in non-nuclear generation construction expenditures primarily due to higher spending on the Jefferson Power Station project, the Ironwood Power Station project, and the Arkansas Cypress Solar project;

•an increase of $41.8 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2026; and

•an increase of $16.5 million in cash used as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle.

•money pool activity;

•a decrease of $43.1 million in capital expenditures related to storm restoration primarily due to lower spending on minor storms in 2026 as compared to 2025, partially offset by an increase due to Winter Storm Fern restoration efforts in 2026. See “Winter Storm Fern” above for discussion of storm restoration efforts in 2026;

•a decrease of $37 million in cash collateral posted to support Entergy Arkansas’s obligations to MISO in 2026; and

•a decrease of $20.3 million in decommissioning trust fund investment activity.

Increases in Entergy Arkansas’s receivable from the money pool are a use of cash flow, and Entergy Arkansas’s receivable from the money pool increased $2.6 million for the nine months ended September 30, 2026 compared to increasing by $120.3 million for the nine months ended September 30, 2025. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Net cash flow provided by financing activities increased $410.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•the issuances of $500 million of 5.75% Series mortgage bonds and $500 million of 4.95% Series mortgage bonds, each in January 2026;

•a capital contribution of $200 million received from Entergy Corporation in 2026 in order to maintain Entergy Arkansas’s capital structure;

•the issuance of $120 million of 5.28% Series P notes by the Entergy Arkansas nuclear fuel company variable interest entity in July 2026;

•an increase of $94.6 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements; and

•the repayment of $600 million of 3.5% Series mortgage bonds in February 2026;

•the issuance of $300 million of 5.45% Series mortgage bonds in May 2025;

•the repayment of $90 million of 1.84% Series N notes by the Entergy Arkansas nuclear fuel company variable interest entity in July 2026; and

•net repayments of $13.7 million in 2026 as compared to net long-term borrowings of $1.6 million in 2025 on the nuclear fuel company variable interest entity’s credit facility.

Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $15.2 million for the nine months ended September 30, 2025.

Entergy Arkansas’s debt to capital ratio is shown in the following table. The decrease in the debt to capital ratio for Entergy Arkansas is primarily due to net income in 2026 and a capital contribution of $200 million received from Entergy Corporation in 2026, partially offset by the net issuance of long-term debt in 2026.

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Arkansas uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Arkansas also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Arkansas’s financial condition because net debt indicates Entergy Arkansas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Arkansas’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.

Entergy Arkansas is developing its capital investment plan for 2027 through 2030 and currently anticipates making the following construction and other capital investments during that period:

In addition to routine capital spending to maintain operations, the capital plan for Entergy Arkansas includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Arkansas’s portfolio, as well as to support customer growth, including Ironwood Power Station, Jefferson Power Station, Arkansas Cypress Solar, the White Bluff Unit 1 fuel conversion, and battery energy storage systems; investments in ANO 1 and 2; distribution and Utility support spending to improve reliability and customer experience; transmission spending to improve reliability while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental policies and actions, including trade-related governmental actions, such as tariffs, executive orders, and other measures, including Executive Order 14421 and the Section 232 Proclamation, environmental regulations, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies. Entergy Arkansas is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and governmental policies and actions, such as tariffs, executive orders, and other measures, including Executive Order 14421 and the Section 232 Proclamation, on its current and planned capital projects, including project delays, modifications, and cost increases.

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

Entergy Arkansas has a credit facility in the amount of $300 million scheduled to expire in June 2031. Entergy Arkansas also has a $25 million credit facility scheduled to expire in April 2028. The $300 million credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of September 30, 2026, there were no cash borrowings under either credit facility and no letters of credit outstanding under the $300 million credit facility. In addition, Entergy Arkansas is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO. As of

September 30, 2026, $177.5 million in letters of credit were outstanding under Entergy Arkansas’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

The Entergy Arkansas nuclear fuel company variable interest entity has a credit facility in the amount of $80 million scheduled to expire in June 2029. As of September 30, 2026, there were no loans outstanding under the credit facility for the Entergy Arkansas nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for discussion of the nuclear fuel company variable interest entity credit facility.

Jefferson Power Station

As discussed in the Form 10-K, in August 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of Jefferson Power Station, an approximately 754 MW natural gas-fired combined cycle combustion turbine facility to be located in Jefferson County, Arkansas. The estimated cost of the project is $1,602 million. In January 2026 the APSC issued its order finding that Entergy Arkansas had demonstrated a need for the resource but had not met its burden with respect to supporting the prudence of the costs to construct the resource. The APSC acknowledged that the costs would be greater if Entergy Arkansas waited to pursue the resource. The APSC authorized Entergy Arkansas to proceed with Jefferson Power Station as a strategic investment with estimated costs set at a benchmark, which the APSC erroneously believed reflected the current cost estimate but was, in fact, $90 million below the cost presented. In its January 2026 order, the APSC also approved Entergy Arkansas’s recovery of the costs of constructing Jefferson Power Station through the Generating Arkansas Jobs Act rider. Additionally, in its January 2026 order, the APSC found that Entergy Arkansas should conduct all-source competitive solicitations for future generation additions, with limited exceptions where Entergy Arkansas believes that a specific solicitation should be restricted to a certain resource and provides a detailed explanation to the APSC supporting this belief, which the APSC later determined in its March 2026 order is a narrow exception. In February 2026, Entergy Arkansas filed for rehearing seeking to correct the benchmark. In March 2026 the APSC issued an order denying Entergy Arkansas’s petition and maintained the benchmark, although costs over the benchmark were not found to be disallowed. Also in its March 2026 order, the APSC ordered Entergy Arkansas to submit a draft of an all-source request for proposals within thirty days of the order, which Entergy Arkansas filed in April 2026. Also in March 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of its construction costs, as required by the APSC order. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s cost independent monitor proposals for three pending resources, including Jefferson Power Station, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties, and the APSC approved Entergy Arkansas’s independent monitor proposal in September 2026. The facility is expected to be in service by the end of 2029.

Special Rate Contract and Arkansas Cypress Solar

As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking approval of a long-term special rate contract between Altitude Capital, LLC, a subsidiary of Alphabet Inc. (Google) and Entergy Arkansas for the sale of electricity to a new large-scale data center in West Memphis, Arkansas. In December 2025 the APSC issued an order approving the special rate contract but denying the requested ratemaking treatment of Google’s upfront payments and deferring a decision on the treatment under the contract pricing providing for the deferral and amortization of the investment tax credits from the Arkansas Cypress Solar facility (discussed below). Also in December 2025, Entergy Arkansas filed a petition with the APSC regarding these findings, noting that they would require renegotiation of the special rate contract. In January 2026 the APSC issued an order maintaining its position on the ratemaking treatment of Google’s upfront payments but reversing itself on the treatment of the Arkansas Cypress Solar facility investment tax credits and allowing those to be used in the pricing of the Arkansas Cypress Solar facility to Google as provided for in the contract. In October 2026, Entergy Arkansas filed for approval of an amendment to the special rate contract regarding the expansion and acceleration of Google’s project in West Memphis. Subject to APSC approval, investments proposed under the amended contract included a 250 MW battery energy storage system to be located at the Driver Solar facility in Mississippi County, Arkansas (Driver Solar battery energy storage system), a 100 MW battery energy storage system to be located adjacent to the existing Arklahoma substation near the in-progress Ironwood Power Station in Hot Spring County, Arkansas (Jones Mill battery energy storage system), a 440 MW solar power purchase agreement from the Big Island Solar facility, and related transmission upgrades and facilities. A procedural schedule has been set with a hearing scheduled for January 2027.

As discussed in the Form 10-K, in September 2025, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Arkansas Cypress Solar facility, a planned 600 MW solar photovoltaic array with a 350 MW battery energy storage system and associated transmission facilities interconnecting at Entergy Arkansas’s White Bluff substation. The estimated cost of the project is $1,602 million. In March 2026 the APSC approved the Arkansas Cypress Solar facility and Entergy Arkansas’s recovery of the costs of the facility through the Generating Arkansas Jobs Act rider. The APSC also ordered implementation of an independent monitor to oversee costs. In April 2026, Entergy Arkansas filed with the APSC its proposal for an independent monitor to oversee the reasonableness of costs. In April 2026 the APSC issued an order consolidating Entergy Arkansas’s independent monitor proposals for three pending resources, including the Arkansas Cypress Solar facility, into a single docket and directing parties with full intervention status to respond to the proposals and recommend independent monitor candidates. No alternative recommendations were made by the other parties, and the APSC approved Entergy Arkansas’s independent monitor proposal in September 2026. The facility is expected to be in service by the end of 2028.

In October 2026, Entergy Arkansas filed an application with the APSC seeking a certificate of environmental compatibility and public need for the construction and operation of the Driver Solar battery energy storage system and the Jones Mill battery energy storage system. The battery energy storage systems are being developed to help support the expansion and acceleration of Google’s project in West Memphis. The estimated cost of the Driver Solar battery energy storage system is $389.4 million, and the estimated cost of the Jones Mill battery energy storage system is $161.2 million. Pending receipt of APSC approval, each battery energy storage system is expected to be in service in 2028.

White Bluff Unit 1 Fuel Conversion

In August 2026, Entergy Arkansas filed an application with the APSC seeking a certificate of convenience and necessity or, in the alternative, a certificate of environmental compatibility and public need for the conversion of White Bluff Unit 1 to operate on natural gas. White Bluff Unit 1 is one of two coal-burning generating units at the White Bluff Steam Electric Station facility, which provides dispatchable capacity of approximately 1,659 MW. The estimated cost of the project is $301.3 million, which Entergy Arkansas proposes to recover through the Generating Arkansas Jobs Act rider. In September 2026 the APSC general staff filed testimony opposing the conversion, criticizing Entergy Arkansas’s demonstration of need and asserting that a prior APSC order required Entergy Arkansas to have performed a market test on the conversion. Entergy Arkansas filed a motion seeking a declaratory order to gain procedural clarity from the APSC regarding the interpretation of its prior order. In October 2026 the APSC found Entergy Arkansas’s interpretation of the prior order to be correct and granted Entergy Arkansas’s motion for declaratory order. In October 2026, Entergy Arkansas filed rebuttal testimony addressing the APSC general staff’s recommendations and misinterpretation of key forecast and modeling information. The APSC general staff’s surrebuttal testimony was filed in October 2026. Pending receipt of APSC approval, construction is expected to begin in 2028 and continue through mid 2029.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.

2026 Base Rate Case

In February 2026, Entergy Arkansas filed with the APSC a general change in rates, charges, and tariffs. The filing requested a base rate increase to recover a base rate revenue deficiency of $44.6 million and notified the APSC of Entergy Arkansas’s intent to implement a forward test year formula rate plan pursuant to Arkansas legislation passed in 2015. The primary drivers of the revenue deficiency were increased depreciation expense and the impact of net capital additions. Additionally, the filing requested a 9.90% return on common equity and increased depreciation rates as the result of a depreciation study. In March 2026 the APSC issued an order suspending the proposed rates and tariffs filed by Entergy Arkansas. In June 2026 the APSC established a procedural schedule with an evidentiary hearing scheduled to begin in November 2026, and in July 2026 a number of intervenors moved to modify the schedule to conduct additional discovery. Entergy Arkansas opposed the motion in part based on the voluminous discovery conducted to date. In August 2026 the APSC general staff and intervenors filed responsive testimony recommending rate reductions comprised primarily of adjustments to the return on common equity, capital structure, depreciation, working capital, vegetation management, and incentive compensation. In September 2026, Entergy Arkansas filed rebuttal testimony addressing each of the proposed adjustments and supporting its update to actuals, made in accordance with APSC rules, resulting in a reduced base rate revenue deficiency of $28.6 million. In October 2026 the APSC general staff and intervenors filed their last round of testimony, and Entergy Arkansas filed its final round of responsive testimony, which included a revised base rate revenue deficiency of $28.9 million. Also in October 2026, Entergy Arkansas, the APSC general staff, and an intervenor filed a joint motion with the APSC requesting approval of a settlement agreement in the base rate case proceeding. The settlement agreement proposes, among other items: (1) no change in retail revenues as a result of a settlement base rate revenue deficiency of zero; (2) an authorized return on common equity of 9.7%; (3) a capital structure of 47.5% equity and 52.5% debt; and (4) adjustments to depreciation rates reflecting changes to the useful lives of certain assets and net salvage curves. In addition, the settlement includes an acceleration of an estimated credit to customers, resulting from the netting adjustment for the 2026 historical year. That netting adjustment would normally be provided as part of the 2027 evaluation report and included in rates effective January 1, 2028. The settlement proposes that the credit would be included in formula rate plan rates beginning January 1, 2027. Following the filing of the October 2026 joint motion with the APSC, the APSC issued an order clarifying that, because the settlement agreement is not unanimous, the hearing currently scheduled for November 2026 will not be conducted solely as a settlement hearing and directing Entergy Arkansas to file additional information to allow the APSC to fully evaluate the settlement agreement.

In July 2026, Entergy Arkansas filed with the APSC its 2026 formula rate plan filing to set its formula rate for the 2027 calendar year. The filing contained an evaluation of Entergy Arkansas’s earnings and a netting adjustment for the 2025 historical year. The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2025 historical year was 8.8%, resulting in a $47.2 million formula rate plan revenue increase to produce a 9.65% earned rate of return on common equity. When combined with 2025 historical year formula rate plan revenues of $56.0 million, the total proposed revenue change for the 2025 historical year netting adjustment is a reduction of $8.8 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. Entergy Arkansas’s revenue requirement in this filing did not exceed the constraint. In second quarter 2026, Entergy Arkansas recorded a regulatory liability of $8.8 million to reflect the amount of the 2025 historical year netting adjustment that it collected from customers during the 2025 rate effective period. In October 2026, Entergy Arkansas and the APSC staff filed a joint motion requesting to cancel the hearing scheduled for November 2026, and, as there are no contested issues between the parties to the proceeding, requesting the APSC decide this matter consistent with the pleadings and testimony in the record.

Generating Arkansas Jobs Act Rider

In March 2026, Entergy Arkansas filed its first annual update to the Generating Arkansas Jobs Act rider, requesting recovery of $110.4 million of financing costs during construction of generation and transmission strategic investments related to Ironwood Power Station, Jefferson Power Station, and the Arkansas Cypress Solar facility. The revised rates were requested to be effective with the first billing cycle of June 2026. In April 2026 the APSC general staff filed testimony arguing that the APSC had not issued an order designating Ironwood Power Station as a strategic investment and that related costs should therefore be removed from the annual update. Also in April 2026, Entergy Arkansas filed testimony asserting that the APSC general staff’s position is contrary to the plain language of the statute, which includes an exception for facilities like Ironwood Power Station that were certified by the APSC within a certain timeframe. A hearing was held in April 2026. In June 2026 the APSC approved Entergy Arkansas’s annual update, and rates became effective June 4, 2026.

Production Tax Credit Tariffs

As discussed in Note 3 to the financial statements in the Form 10-K, in January 2026 the APSC opened a docket to investigate the sale of Entergy Arkansas’s nuclear production tax credits and the appropriate ratemaking treatment of production tax credits for all of Entergy Arkansas’s eligible resources, including how the proceeds of any sales should flow through to customers. For nuclear production tax credits, Entergy Arkansas proposed a nuclear production tax credit rider, which would provide for the immediate flow through to customers of the weighted average cost of capital return on the net proceeds of the monetized nuclear production tax credits. Recognizing that the timing and determination from the IRS is uncertain, the nuclear production tax credit rider also proposes that, if there is an unfavorable IRS determination, Entergy Arkansas would collect applicable costs from customers. As directed by the APSC, in February 2026, Entergy Arkansas submitted a compliance filing to the APSC verifying the status of the solar production tax credits. The filing also verified that the net proceeds from the sale of the nuclear production tax credits were recorded in FERC accounts that are accruing a return for customers’ benefit at a rate that is above the customer deposit rate. Subsequently, in March 2026, Entergy Arkansas filed testimony setting forth its proposal for the solar production tax credits. Specifically, Entergy Arkansas requested the same ratemaking treatment for all of the solar facilities that the APSC already approved for Walnut Bend (i.e., the total net monetized proceeds from production tax credits expected to be generated over the first ten years of a solar facility’s operation are estimated and then amortized over the expected useful life of the asset, which is typically 30 years). Additionally, consistent with prior orders for these resources, the regulatory liabilities associated with the net cash proceeds from monetized solar production tax credits will be included in Entergy Arkansas’s calculation of its weighted average cost of capital providing a return on the unamortized balance for the benefit of customers. Further, Entergy Arkansas proposes to flow the benefits of the solar production tax credits to customers through Entergy Arkansas’s formula rate plan, effective with the formula rate plan rates that will go into effect January 1, 2027. Entergy Arkansas’s proposal would result in the benefits of the production tax credits being passed through to customers, if approved, as reductions in revenue requirement evenly over the life of the assets, rather than only during the 10-year period in which the production tax credits are generated. In April 2026 the APSC general staff filed testimony proposing an amortization period of no more than 15 years for the monetized proceeds for the tax credits associated with the West Memphis Solar and Driver Solar facilities. An evidentiary hearing was initiated in July 2026 and completed in August 2026.

Energy Cost Recovery Rider

In March 2026, 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 $0.01333 per kWh to $0.01508 per kWh.

The primary reason for the rate increase was an under-recovered balance as a result of higher natural gas prices in 2025. Based on circumstances related to ANO 2’s refueling outage, Entergy Arkansas made an adjustment to projected energy costs to phase-in the rate increase gradually. The redetermined rate of $0.01508 per kWh became effective with the first billing cycle in April 2026 through the normal operation of the tariff.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Arkansas’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.

ENTERGY LOUISIANA, LLC AND SUBSIDIARIES

See the “Winter Storm Fern” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for a discussion of Winter Storm Fern. Entergy Louisiana’s cost of mobilizing crews and restoring power was approximately $240 million, including approximately $205 million in capital costs and approximately $35 million in non-capital costs. Natural gas purchases for Entergy Louisiana were $256 million in January 2026 compared to $115 million in January 2025. See Note 2 to the financial statements herein and in the Form 10-K for discussion of fuel cost recovery at Entergy Louisiana. See Note 2 to the financial statements herein for discussion of restoration costs from Winter Storm Fern included in the 2025 formula rate plan filing.

Net income increased $94.1 million primarilydue to higher retail electric price, higher volume/weather, higher other income, and higher revenues resulting from the return on construction work in progress for certain utility plant investments. The increase was partially offset by higher interest expense, higher other operation and maintenance expenses, higher depreciation and amortization expenses, and higher taxes other than income taxes.

Net income increased $128.4 million primarilydue to higher retail electric price, higher revenues resulting from the return on construction work in progress for certain utility plant investments, higher volume/weather, higher other income, and a lower effective income tax rate. The increase was partially offset by higher interest expense, higher other operation and maintenance expenses, higher depreciation and amortization expenses, and higher taxes other than income taxes.

Entergy Louisiana’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

•an increase in formula rate plan rates effective September 2026;

•a decrease in formula rate plan revenues for a two-month period beginning September 2025 resulting from earnings above the authorized return on common equity for the 2024 test year; and

•increases in the resilience plan cost recovery rider effective March 2026 and September 2026.

See Note 2 to the financial statements herein for discussion of the resilience plan cost recovery rider filings and the 2025 formula rate plan proceeding and Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan proceeding.

The volume/weather variance is primarily due to an increase in weather-adjusted residential and commercial usage and the effect of more favorable weather on residential and commercial sales.

The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related construction costs are incurred.

Total electric energy sales for Entergy Louisiana for the three months ended September 30, 2026 and 2025 are as follows:

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

Entergy Louisiana’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

•an increase in formula rate plan rates effective September 2026;

•a decrease in formula rate plan revenues for a two-month period beginning September 2025 resulting from earnings above the authorized return on common equity for the 2024 test year; and

•increases in the resilience plan cost recovery rider effective March 2025, March 2026, and September 2026.

See Note 2 to the financial statements herein for discussion of the resilience plan cost recovery rider filingsand the 2025 formula rate plan proceeding and Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan proceeding.

The return on construction work in progress for certain utility plant investments variance represents the revenue related to the amortization of certain customer advances designed to provide a return on investment in construction work in progress for certain utility plant investments, which is recognized as the related construction costs are incurred.

The volume/weather variance is primarily due to increases in industrial and residential usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily petroleum refining, chlor-alkali, and petrochemicals customers, and an increase in demand from co-generation customers.

The effect of sale of natural gas distribution business variance represents the decrease in operating revenues resulting from the absence of natural gas revenues following the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025.

Total electric energy sales for Entergy Louisiana for the nine months ended September 30, 2026 and 2025 are as follows:

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

•a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of Entergy Louisiana’s natural gas distribution business;

•an increase of $7.7 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $5 million in energy efficiency expenses primarily due to the timing of recovery from customers; and

The increase was partially offset by the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and evaluate an alternative transmission solution. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -Liquidity and Capital Resources” in the Form 10-K for discussion of the Bayou Power Station project.

Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates effective January 2026, and increases in nuclear depreciation rates effective September 2025 and September 2026 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.

Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

•an increase of $15.4 million in interest earned on money pool investments;

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects;

•an increase of $11.1 million in the amortization of tax gross-up on customer advances, including customer advances for construction; and

•changes in decommissioning trust fund activity, including portfolio rebalancing of the River Bend decommissioning trust fund in third quarter 2026.

The increase was partially offset by a decrease of $4.6 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations. See Note 2 to the financial statements in the Form 10-K for discussion of the storm cost securitizations.

•an increase of $23 million in carrying costs on customer advances, including customer advances for construction;

•the issuances of $500 million of 5.50% Series mortgage bonds and $500 million of 6.20% Series mortgage bonds, each in August 2026; and

•$4.2 million in carrying costs in third quarter 2026 on retained net proceeds from the monetization of nuclear production tax credits.

The increase was partially offset byan increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects.

•a $17.5 million gain, recorded in third quarter 2025, resulting from the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of Entergy Louisiana’s natural gas distribution business;

•an increase of $16.3 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•an increase of $11.6 million in compensation and benefits costs primarily due to a larger revision to estimated incentive-based compensation expense in 2025, higher healthcare claims activity, and the timing of the recognition of prescription drug rebates;

•an increase of $8.5 million in nuclear generation expenses primarily due to a higher scope of work performed in 2026 as compared to 2025;

•an increase of $6 million in energy efficiency expenses primarily due to the timing of recovery from customers; and

The increase was partially offset by the expensing of $10.8 million of project costs associated with the Bayou Power Station project following Entergy Louisiana’s election in third quarter 2025 to cancel the project and evaluate an alternative transmission solution and a decrease of $7.4 million in loss provisions. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -Liquidity and Capital Resources” in the Form 10-K for discussion of the Bayou Power Station project.

Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates effective January 2026, and increases in nuclear depreciation rates effective September 2025 and September 2026 in accordance with the global stipulated settlement agreement approved by the LPSC in August 2024. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement.

Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

•changes in decommissioning trust fund activity, including portfolio rebalancing of certain decommissioning trust funds in 2026;

•an increase of $40.2 million in the amortization of tax gross-up on customer advances, including customer advances for construction;

•an increase of $25.1 million in interest earned on money pool investments; and

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects.

The increase was partially offset by a $17.1 million true-up in 2025 of Entergy Louisiana's MISO cost recovery mechanism over-recovery balance to the 2024 formula rate plan filing, which was filed with the LPSC in May 2025, and a decrease of $13.6 million in affiliated dividend income from affiliated preferred membership interests related to storm cost securitizations. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing and the storm cost securitizations.

•an increase of $45.8 million in carrying costs on customer advances, including customer advances for construction;

•$12.3 million in carrying costs in 2026 on retained net proceeds from the monetization of nuclear production tax credits; and

•the issuances of $500 million of 5.50% Series mortgage bonds and $500 million of 6.20% Series mortgage bonds, each in August 2026.

The increase was partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2026, including the Amite South transmission projects, and lower interest expense due tothe repayment of $250 million of 4.44% Series mortgage bonds in January 2026.

The effective income tax rates were 19.7% for the third quarter 2026 and 17.8% for the nine months ended September 30, 2026. The differences in the effective income tax rates for the third quarter 2026 and the nine months ended September 30, 2026 versus the federal statutory rate of 21% were primarily due to the book and tax differences related to the non-taxable income distributions earned on preferred membership interests, the amortization of excess accumulated deferred income taxes as a result of tax rate changes, book and tax differences related to the allowance for equity funds used during construction, and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.

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

Sale of Natural Gas Distribution Business

See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy Louisiana natural gas distribution business on July 1, 2025.

Net cash flow provided by operating activities increased $910.6 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•an increase of $906.8 million in receipts of advance payments related to customer agreements, including $803.5 million in customer advances and $103.3 million in tax gross-up on customer advances for construction;

•higher collections from customers;

•a decrease of $39.2 million in spending on nuclear refueling outage costs in 2026 as compared to 2025; and

•a decrease of $31.5 million in interest paid.

•the receipt of $55.8 million in proceeds from the transfer of 2025 nuclear production tax credits to third parties in 2026 as compared to the receipt of $146.4 million in proceeds from the transfer of 2024 nuclear production tax credits to third parties in 2025. See Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein for discussion of the nuclear production tax credits;

•higher fuel and purchased power payments. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•the timing of payments to vendors; and

•an increase of $13 million in non-capital storm spending primarily due to Winter Storm Fern restoration efforts in 2026. See “Winter Storm Fern” above for discussion of storm restoration efforts in 2026.

Net cash flow used in investing activities increased $1,719.5 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•an increase of $1,249.3 million in non-nuclear generation construction expenditures primarily due to higher spending on the Richland Parish Power Station Units 1-4 project, the Waterford 5 Power Station project, the Westlake Power Station project, the Pointe Coupee Units 1-3 project, and the Waterford 6 Power Station project;

•an increase of $475.6 million in transmission construction expenditures primarily due to higher capital expenditures as a result of higher spending on the Amite South transmission projects and on various other transmission projects in 2026;

•the receipt of $203 million in proceeds from the sale of the natural gas distribution business on July 1, 2025. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of Entergy Louisiana’s natural gas distribution business on July 1, 2025;

•an increase of $152.8 million in capital expenditures related to storm restoration primarily due to Winter Storm Fern restoration efforts in 2026. See “Winter Storm Fern” above for discussion of storm restoration efforts in 2026; and

•the receipt of $33.5 million from the storm reserve escrow account in 2025. See Note 2 to the financial statements in the Form 10-K for a discussion of the storm reserve funds.

•a decrease of $125.2 million in nuclear construction expenditures primarily due to decreased spending on various nuclear projects in 2026;

•cash collateral of $37 million posted to support Entergy Louisiana's obligations to MISO in 2025, of which $32.8 million was returned by MISO to Entergy Louisiana in 2026;

•payments totaling $41.4 million to Entergy Texas for the transfer of assets related to the Segno Solar and Votaw Solar facilities to Entergy Louisiana in 2025;

•money pool activity;

•a decrease of $24 million in cash used as a result of fluctuations in nuclear fuel activity due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and

•a decrease of $18.9 million in decommissioning trust fund investment activity.

Increases in Entergy Louisiana’s receivable from the money pool are a use of cash flow, and Entergy Louisiana’s receivable from the money pool increased $26.6 million for the nine months ended September 30, 2026 compared to increasing by $64.8 million for the nine months ended September 30, 2025. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and other borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings.

Net cash flow provided by financing activities increased $2,264.7 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•the issuances of $500 million of 5.50% Series mortgage bonds and $500 million of 6.20% Series mortgage bonds, each in August 2026;

•$546 million in common equity distributions paid in 2025 in order to maintain Entergy Louisiana’s capital structure. No common equity distributions were paid in 2026;

•the repayment of $190 million of 3.78% Series mortgage bonds in March 2025; and

•the repayment of $110 million of 3.78% Series mortgage bonds in March 2025.

•the issuance of $750 million of 5.80% Series mortgage bonds in January 2025;

•the repayment of $250 million of 4.44% Series mortgage bonds in January 2026; and

•net repayments of $2.4 million in 2026 compared to net long-term borrowings of $82.2 million in 2025 on the nuclear fuel company variable interest entities’ credit facilities.

Entergy Louisiana’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Louisiana is primarily due to the net issuance of long-term debt in 2026, partially offset by net income in 2026.

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Louisiana uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Louisiana also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition because net debt indicates Entergy Louisiana’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Louisiana’s uses and sources of capital. The following are updates to the information provided in the Form 10-K.

Entergy Louisiana is developing its capital investment plan for 2027 through 2030 and currently anticipates making the following construction and other capital investments during that period:

In addition to routine capital spending to maintain operations, the capital plan for Entergy Louisiana includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Louisiana’s portfolio, as well as to support customer growth, including Segno Solar, Votaw Solar, Bogalusa West Solar, Cypress Harvest Solar, Franklin Farms Power Station Units 1 and 2, Waterford 5 Power Station, Cottonwood Power Station, Westlake Power Station, Richland Parish Units 1-4, Pointe Coupee Units 1-3, Waterford 6 Power Station, battery energy storage systems, and other new generation resources; investments in River Bend and Waterford 3; distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience while also supporting customer growth and renewables expansion; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental policies and actions, including trade-related governmental actions, such as tariffs, executive orders, and other measures, including Executive Order 14421 and the Section 232 Proclamation, environmental regulations, business opportunities, market volatility, economic trends, business restructuring, changes in project plans, and the ability to access capital, including any changes to governmental programs, such as loans, grants, guarantees, and other subsidies. Entergy Louisiana is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and governmental policies and actions, such as tariffs, executive orders, and other measures, including Executive Order 14421 and the Section 232 Proclamation, on its current and planned capital projects, including project delays, modifications, and cost increases.

Entergy Louisiana’s receivables from the money pool were as follows:

Entergy Louisiana has a credit facility in the amount of $400 million scheduled to expire in June 2031. The credit facility includes fronting commitments for the issuance of letters of credit against $15 million of the borrowing capacity of the facility. As of September 30, 2026, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Louisiana is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. As of September 30, 2026,$161.2 million in MISO letters of credit and$20 million in non-MISO letters of credit were outstanding under Entergy Louisiana’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

The Entergy Louisiana nuclear fuel company variable interest entities have two separate credit facilities, each in the amount of $105 million and scheduled to expire in June 2029. As of September 30, 2026, $67.8 million in loans were outstanding under the credit facility for the Entergy Louisiana Waterford nuclear fuel company variable interest entity and $23.8 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for additional discussion of the nuclear fuel company variable interest entity credit facilities.

Renewables

Cypress Harvest Solar

As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification for the Cypress Harvest Solar facility, a 200 MW solar facility to be located in Iberville Parish, Louisiana. In March 2026 the LPSC staff filed an affidavit attesting that the Cypress Harvest Solar facility meets the applicable parameters for Entergy Louisiana’s expedited certification process and recommending that the LPSC grant certification. At its April 2026 meeting, the LPSC voted to grant the requested approval and certification, with a written order issued in May 2026. In July 2026 the Iberville Parish Council adopted a two-year moratorium on battery energy storage system development to allow time for further evaluation of the community impacts of the technology. In response to the battery moratorium, Entergy Louisiana is planning to replace the 200 MW battery planned for the Cypress Harvest Solar facility with a 110 MW battery at the Segno Solar facility and a 90 MW battery at the Votaw Solar facility. In both August and September 2026, the Iberville Parish Council voted to deny the permit for the Cypress Harvest Solar facility. In October 2026, Entergy Louisiana filed a petition for declaratory and injunctive relief in the 18th Judicial District Court for the Parish of Iberville challenging the Iberville Parish Council’s failure to comply with the requirements of its solar farm regulation. Entergy Louisiana is evaluating the effect of these recent actions on the Cypress Harvest Solar facility, including on the facility’s scheduled in service date of 2028. As of September 30, 2026, Entergy Louisiana has incurred approximately $30 million of project costs for the Cypress Harvest Solar facility.

Segno Solar and Votaw Solar

As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking approval and certification to construct the Segno Solar facility and Votaw Solar facility. The application asks that the LPSC approve, subject to certain ongoing discussions, allocation of the two facilities to a designated renewable resources subscription to Entergy Louisiana’s Rider Geaux Zero, and further asserts that the two solar resources fall below certain breakeven parameters established in connection with the LPSC’s order allowing Entergy Louisiana to procure up to 3 gigawatts of solar resources, thus supporting that the resources should be certified as being in the public interest. The application requested consideration by the LPSC at or before its August 2026 meeting. A procedural schedule was set with a hearing initially scheduled for July 2026. In June 2026, Entergy Louisiana filed an unopposed motion asking that the procedural schedule be suspended to allow for settlement negotiations. The motion was granted and the procedural schedule was suspended. Based on a contractual right exercised by the developer in September 2026, Entergy must elect during the fourth quarter of 2026 whether to (i) purchase the assets included in the development agreement as they exist as of October 30, 2026 or (ii) waive the right to purchase the assets, remove the project from the MISO interconnection queue, and retain any MISO refund. Entergy Louisiana is in discussions with the developer regarding these options as well as considering other options for the continued development of the Votaw Solar facility. Subject to approval by the LPSC for each facility and resolution of the development issues at the Votaw Solar facility, each facility is expected to be in service by 2029.

Other Generation and Transmission

Additional Generation and Transmission Resources

See the Form 10-K for discussion of Entergy Louisiana’s October 2024 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 was previously executed.

In March 2026, Entergy Louisiana entered into an electric service agreement with Evest LLC (Evest), a subsidiary of Meta Platforms, Inc., in connection with establishing service to a second new data center to be developed by Evest in north Louisiana. The obligations pursuant to the agreement will commence following construction of certain transmission facilities needed to serve Evest, and the effectiveness of the agreement is conditioned upon receipt of required governmental approvals, including approval from the LPSC. Also in March 2026, Entergy Louisiana filed an application with the LPSC for certification to construct seven new combined cycle combustion turbine generation resources totaling 5,278 MW at a total cost of approximately $12.9 billion, each of which will be enabled for future carbon capture and storage, and three battery energy storage systems, including two that were originally proposed to be co-located with solar resources at the Cypress Harvest Solar facility in Iberville Parish and the Bogalusa West Solar facility in Washington Parish. The application also seeks approval to construct a new 500 kV transmission line, from West Fork Creek to St. Landry, estimated to cost $1.4 billion, and other related transmission facilities. In response to a two-year battery moratorium enacted by the Iberville Parish Council in July 2026, Entergy Louisiana is planning to replace the 200 MW battery planned for the Cypress Harvest Solar facility with a 110 MW battery at the Segno Solar facility and a 90 MW battery at the Votaw Solar facility. Four of the new combined cycle combustion turbine generation resources are to be located near the customer site in north Louisiana (Richland Parish Units 1-4), while the remaining three units will be located near the existing Big Cajun site in Pointe Coupee Parish (Pointe Coupee Units 1-3). The seven new combined cycle combustion turbine generation resources have various estimated in-service dates in 2030 and 2031. The application also requests certain approvals related to a corporate sustainability agreement with the new customer. The corporate sustainability agreement contemplates the new customer contributing to the costs of the future addition of 2,500 MW of new renewable and energy storage resources, agreements involving nuclear-related efforts and contributions to bill assistance and other programs for low-income residents. Entergy Louisiana anticipates recovering 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 application is pending before the LPSC. At its April 2026 meeting, the LPSC voted to direct the administrative hearings division to adopt a procedural schedule that would allow for LPSC consideration of the matter at its December 2026 meeting, and also to have the administrative hearings division serve as a hearing examiner and compile a record for the LPSC to consider without the issuance of a formal recommendation from the ALJ. Testimony of the LPSC staff and certain intervenors was filed in July 2026 and cross answering testimony of the LPSC staff and certain intervenors was filed in August 2026. Entergy Louisiana’s rebuttal testimony was filed in September 2026. The hearing in this matter took place in October 2026. Ahead of the hearing, Entergy Louisiana reached a settlement with the LPSC staff and one intervenor. The settlement resolves all outstanding issues among Entergy Louisiana, the LPSC staff, and the intervenor and recommends, among other things, that the LPSC certify the proposed resources. An LPSC decision is expected in December 2026.

The electric service agreement and related contracts contain provisions that protect Entergy Louisiana’s current customers in a manner consistent with the LPSC’s Lightning Initiative and Entergy Louisiana’s Fair Share Plus guidelines, which the LPSC and Entergy Louisiana, respectively, developed in response to increased investment in large data centers in Louisiana. The protections include terms requiring the customer to pay Entergy Louisiana’s incremental costs to serve the customer, including through contributions in aid of construction, other advanced payments and minimum monthly bills. The agreements also include specified financial obligations in the event that Evest terminates the contracts early, restructures the project, or in the event of default. These specified financial obligations would be based on Entergy Louisiana’s unrecovered incremental costs to serve Evest at the time of such an event. Evest’s obligations under the electric service agreement and related contracts are secured by various forms of collateral, including a guaranty from Meta Platforms, Inc.

Finally, the electric service agreement also includes provisions relating to Entergy Louisiana’s performance obligations, including the timely construction of the facilities supporting service to Evest, audit rights for the construction costs supported by Evest, and service standards during the term of the electric service agreement. Entergy Louisiana’s failure to meet one or more of these performance obligations could result in specified financial and/or non-financial penalties. Such penalties would vary based on the nature and severity of the failure, including the potential termination of the electric service agreement.

In June 2026 certain intervenors filed a motion requesting that the LPSC issue a subpoena to Meta Platforms, Inc. to obtain certain information about the data center project, including the level of expected investment, job creation, load characteristics, and other aspects of the project, as well as certain financial information. In July 2026, after briefing and argument, the ALJ issued a ruling granting this motion in part and denying it in part. In July 2026, Meta Platforms, Inc. filed a motion to quash the subpoena and a motion for interlocutory review of the ruling that granted the issuance of the subpoena. Meta Platforms, Inc.’s motion for interlocutory review of the ruling was granted by the LPSC at its August 2026 Business and Executive Session. In September 2026 the intervenors seeking the subpoena filed a Petition for Appeal and Judicial Review or in the Alternative Supervisory Writ naming the LPSC as respondent and seeking judicial review of the LPSC’s decision.

Babel - Webre 500 kV Transmission Project

As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application with the LPSC seeking a certificate of public convenience and necessity for a 500 kV transmission project that includes the construction of a new 147-mile Babel to Webre 500 kV transmission line, the reconstruction of the Webre 500 kV switching station in Louisiana, and coordination with Entergy Texas on the construction of an approximately 4-mile 500 kV transmission line in Texas. The project was approved by MISO in the 2025 MISO Transmission Expansion Plan and has an estimated cost of $1,238 million and an estimated in-service date of August 2029. In May 2026 the LPSC staff and the Southern Renewable Energy Association (SREA), an intervenor, filed direct testimony. The LPSC staff’s testimony and SREA’s testimony recommended that the LPSC find the project to be in the public interest and grant certification under the LPSC’s general order on transmission siting. The parties entered into an uncontested stipulated settlement agreement and participated in a settlement hearing in September 2026. The LPSC voted to accept the settlement and approve the project at its October 2026 Business and Executive Session.

Waterford 6 Power Station and Westlake Power Station

As discussed in the Form 10-K, in February 2026, Entergy Louisiana filed an application seeking LPSC approval and certification to construct two 754 MW combined cycle combustion turbine generators, the Waterford 6 Power Station and the Westlake Power Station, to be located at Entergy Louisiana’s existing Waterford site near Killona, Louisiana and existing Roy S. Nelson site in Westlake, Louisiana, respectively. In its application, Entergy Louisiana noted the estimated costs are approximately $2,027 million for the Waterford 6 Power Station and $2,091 million for the Westlake Power Station. The LPSC staff and intervenors in the proceeding filed direct testimony in July 2026. The LPSC staff’s testimony expressed support for the LPSC’s approval of Entergy Louisiana’s proposed new generation projects subject to certain conditions. Certain intervenors oppose such approval. Entergy Louisiana filed rebuttal testimony in September 2026. In October 2026, Entergy Louisiana entered into a third-party financing arrangement for the Waterford 6 Power Station. A hearing was held in October 2026. An LPSC decision is expected in first quarter 2027. Subject to timely approval by the LPSC and receipt of other permits and approvals, the estimated in-service dates for the Waterford 6 Power Station and Westlake Power Station are July 2030 and October 2030, respectively. See Note 1 to the financial statements herein for discussion of the build-to-suit lease arrangement for the Waterford 6 Power Station.

Cottonwood Power Station

As discussed in the Form 10-K, in December 2025, Entergy Louisiana filed an application seeking LPSC approval and a certificate of convenience and necessity to acquire the Cottonwood combined cycle combustion turbine facility, a 1,263 MW combined cycle facility in Deweyville, Texas that was originally placed in commercial service in 2003. The filing seeks findings from the LPSC that the costs of the acquisition, including the approximately $1.5 billion purchase price and $309.3 million in capital upgrades and maintenance items needed to bring the Cottonwood facility into alignment with Entergy Louisiana’s fleet standards with respect to operations and safety, are eligible for recovery in customer rates. In June 2026 the LPSC staff filed direct testimony raising various concerns and objections to the proposed transaction as presented in Entergy Louisiana’s application. The LPSC staff asserts that the need for the Cottonwood facility is driven predominantly by loads associated with certain large data center projects and opines that the costs and future operational risks of the Cottonwood facility should be borne by these customers in particular, not Entergy Louisiana’s customers generally. The LPSC staff’s direct testimony also raises issues regarding the acquisition premium, potential stranded costs, and future operating risks associated with the Cottonwood facility. Discovery is ongoing, and Entergy Louisiana filed rebuttal testimony in July 2026. A hearing is scheduled for February 2027. The acquisition is currently targeted to close in the first or second quarter of 2027, subject to regulatory approvals and other conditions to closing.

Build-to-Suit Lease Arrangement for the Waterford 6 Power Station

In October 2026, Entergy Louisiana entered a build-to-suit lease arrangement for the Waterford 6 Power Station as the lessee with a consortium of investors (the Investors). Under the terms of the arrangement, the Investors purchased the in-process Waterford 6 Power Station construction project from Entergy Louisiana at a cost of $167.5 million and will spend up to $1.875 billion (including the initial purchase price) to construct the Waterford 6 project as designed by Entergy Louisiana. Entergy Louisiana is engaged to serve as the construction agent for the Waterford 6 Power Station project. The Investors, however, control the asset during construction. If Entergy Louisiana defaults in its role as construction agent, the Investors have various options available to remedy the default, including the replacement of Entergy Louisiana as construction agent, the acceleration of the lease balance payable by Entergy Louisiana, causing a sale of the Waterford 6 Power Station project to a third party, and certain other options. If the LPSC rejects the Waterford 6 Power Station project or certain other circumstances occur that are outside of Entergy Louisiana’s control, then either the Investors or Entergy Louisiana could exercise the right to terminate the arrangement, in which case Entergy Louisiana would be required to purchase the in-process Waterford 6 Power Station project from the Investors at an amount equal to their costs incurred to date, including carrying costs. Because Entergy Louisiana does not control the in-process construction project, it will not recognize the asset (i.e., construction work in progress) or an associated liability during construction.

Upon the Waterford 6 Power Station’s readiness for first synchronization to the grid, expected in late 2029, a triple-net lease will commence under which Entergy Louisiana will have control of the Waterford 6 Power Station and receive all output from the plant. The initial term of the lease will end seven years from the closing of the arrangement, or approximately four years after the Waterford 6 Power Station’s expected readiness for first synchronization to the grid. The lease cost will be equal to the Secured Overnight Financing Rate plus a margin which is based on the credit rating of Entergy Louisiana, multiplied by the total costs (including carrying costs) incurred by the Investors as of the commencement of the lease. Entergy Louisiana will have the option to purchase the Waterford 6 Power Station at any time during the lease term at a price equal to the total cost of the plant to the Investors, plus any fees and carrying charges owed to the Investors. If the purchase price option is exercised within two years of commencement of the triple-net lease, Entergy Louisiana must enter into a secured note payable to the Investors for the amount of the purchase price. The note payable would be due at the end of the initial lease term, but may be prepaid at any time beginning two years after the commencement date of the lease. The note will be secured by the Waterford 6 Power Station and related equipment and collateral.

At the end of the initial lease term, Entergy Louisiana must exercise one of the following options: (1) renew the lease for an additional five year term, subject to unanimous consent of the Investors; (2) purchase the plant at a price equal to the total cost of the plant to Investors, plus any fees and carrying charges owed to the Investors; or (3) sell the plant on behalf of the Investors. If Entergy Louisiana chooses the third option, then it will owe or be owed any difference between the total cost of the plant to Investors and the sale price.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation and Fuel Cost Recovery” in the Form 10-K for a discussion of state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.

Resilience Plan Cost Recovery Rider

In December 2022, Entergy Louisiana filed an application with the LPSC seeking a public interest finding regarding Phase I of Entergy Louisiana’s Future Ready resilience plan and approval of a rider mechanism to recover the program’s costs. Phase I in the December 2022 application reflected the first five years of a ten-year resilience plan and included investment of approximately $5 billion, including hardening investment, transmission dead-end structures, enhanced vegetation management, and telecommunications improvement. In April 2024 the LPSC approved a framework which includes an initial five-year resilience plan providing for an investment of approximately $1.9 billion with cost recovery via a forward-looking rider with semi-annual true-ups. The plan is subject to specified reporting requirements and includes a performance review of the hardened assets. The LPSC order approving the framework does not include any restrictions on Entergy Louisiana’s ability to file applications for approval of additional investments in resilience.

In January 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $40.4 million, or $38.9 million in incremental annual revenues from Entergy Louisiana’s first semi-annual filing in July 2024, for projects expected to be placed in service during the rate-effective period of March 2025 through August 2025. In February 2025 the LPSC staff reviewed the filed rider rates and identified no material issues.

In July 2025, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $50.2 million, or $9.8 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2025 through February 2026. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $5.6 million to be implemented in the January 2026 semi-annual filing. In August 2025 the LPSC staff reviewed the filed rider rates and identified no material issues.

In January 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $101.8 million, or $51.6 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of March 2026 through August 2026. Additionally, Entergy Louisiana’s true-up filing included an over-recovery totaling $16.6 million to be implemented in the July 2026 semi-annual filing. In February 2026 the LPSC staff reviewed the filed rider rates and identified no material issues.

In July 2026, Entergy Louisiana’s semi-annual filing sought to collect from Entergy Louisiana’s retail customers approximately $114.2 million, or $12.4 million in incremental annual revenues, for projects expected to be placed in service during the rate-effective period of September 2026 through February 2027. Additionally, Entergy Louisiana’s true-up filing included an under-recovery totaling $2.5 million to be implemented in the January 2027 semi-annual filing. In August 2026 the LPSC staff reviewed the filed rider rates and identified no material issues.

In September 2026, Entergy Louisiana filed an application for the LPSC’s approval of Phase IA of Entergy Louisiana’s Future Ready resilience plan, which consists of additional distribution and transmission hardening projects representing approximately $600 million of investment to be completed over the period 2027 to 2030. The application seeks LPSC approval to extend the previously-approved Phase I of Entergy Louisiana’s Future Ready resilience plan with these additional projects to further improve the resilience of Entergy Louisiana’s electric system and further seeks approval to continue to use the resilience plan cost recovery rider to recover the costs of the plan from customers. The primary purpose of Phase IA is to serve as a bridge between Phase I, which is currently expected to conclude by 2028, and a Phase II plan, which Entergy Louisiana expects to develop in accordance with guidance from the LPSC that is expected to be issued in the LPSC’s ongoing resiliency rulemaking docket. Discovery is ongoing. In October 2026 a procedural schedule was established that provides for a hearing in June 2027. Entergy Louisiana has requested an LPSC decision by July 2027.

Vegetation Management Rider

In November 2025 the LPSC staff issued notice of its initiation of a rulemaking to implement a vegetation management pilot program for LPSC jurisdictional electric utilities. The pilot program would be voluntary and would allow utilities to establish a rider for distribution vegetation management for up to 100% of the utility’s prior calendar year vegetation management spending. The rider may not exceed 1% of a customer’s bill, and the utility would be required to maintain its prior calendar year level of spending on vegetation management as reflected in its base rates or formula rate plan. In February 2026 the LPSC staff filed a report and recommendation along with a proposed final rule providing for the adoption of the pilot program consistent with the terms outlined in the original notice. In March 2026 the LPSC voted to accept the LPSC staff’s recommendation and adopt the proposed pilot program as presented. In April 2026, Entergy Louisiana filed its vegetation management rider for the rate-effective period of May 2026 through December 2026, which included a revenue requirement of $20 million for incremental spending on distribution vegetation management above the prior calendar year level of spending on vegetation management.

2025 Formula Rate Plan Filing

In June 2026, Entergy Louisiana filed its formula rate plan evaluation report for its 2025 calendar year operations. Consistent with the global stipulated settlement agreement approved by the LPSC in August 2024, the filing reflected a 9.7% allowed return on common equity with a bandwidth of 40 basis points above and below the midpoint. For the test year 2025, the formula produced an earned return on equity of 9.63%, which falls within the established bandwidth and therefore results in no adjustment to base rider formula rate plan revenue.

Additional changes in formula rate plan revenue include: (1) the removal of approximately $73 million in annual customer credits associated with the global stipulated settlement agreement, which have been fully credited to customers in accordance with the agreement; (2) a reduction in customer credits through the tax adjustment mechanism, attributable to the return of Entergy Louisiana’s over-collection of income tax expense associated with Louisiana state tax law changes effective in 2025 and the expiration of certain ad valorem exemptions; (3) increases in transmission and distribution plant in service, as recognized through the transmission and distribution recovery mechanisms, including restoration costs from Winter Storm Fern, for which Entergy Louisiana does not intend to seek relief or exception to the formula rate plan; (4) increases to the additional capacity mechanism; and (5) the final phase-in of additional nuclear depreciation expense, in accordance with the global stipulated settlement agreement. See Note 2 to the financial statements in the Form 10-K for discussion of the global stipulated settlement agreement. Collectively, these factors contributed to a net increase of $222 million in formula rate plan revenue for the period. In August 2026 the LPSC staff filed its errors and objections report. The report did not identify any specific errors, objections, or adjustments. However, the LPSC staff reserved its rights with respect to three issues pending further review: (1) the allocation between Entergy Louisiana and Entergy Texas of River Bend’s undepreciated plant balances, costs, and related liabilities; (2) certain projects included in the transmission recovery mechanism filing; and (3) the use of a blended retail/FERC depreciation rate for River Bend depreciation expense. Subject to LPSC review, the resulting changes from the 2025 formula rate plan evaluation report became effective for bills rendered during the first billing cycle of September 2026, subject to refund.

In June 2026, Entergy Louisiana submitted a motion requesting the LPSC approve a one-year extension of its current formula rate plan, with all material provisions left unchanged, including the allowed return on common equity of 9.7% with a bandwidth of 40 basis points above and below the midpoint. LPSC action on the proposed extension is expected by November 2026.

River Bend Deregulated Asset Plan Filing

In September 2025, Entergy Louisiana filed an application seeking LPSC approval to recover from customers, prospectively, approximately $49 million in annual revenues associated with the Louisiana retail deregulated portion of River Bend. Costs associated with the deregulated portion of River Bend have historically been excluded from retail ratemaking as a result of a 1988 LPSC decision. Instead, Entergy Louisiana has been allowed by the LPSC to either recover 4.6 cents per kWh for the power generated from that portion of the plant, or sell the power into the applicable market (subject to certain restrictions). The filing presents evidence that River Bend is a cost-effective and prudent source of needed baseload supply with value to Entergy Louisiana customers and seeks to recover the previously excluded costs, on a prospective basis. In March 2026 the LPSC staff and certain intervenors filed direct testimony recommending that the LPSC deny Entergy Louisiana’s application. The LPSC staff’s testimony further recommends that, if the LPSC were to grant any relief, notwithstanding the LPSC staff’s recommendation, such relief should be limited to allowing only prospective capital additions at River Bend to be included in Entergy Louisiana’s customer rates. Entergy Louisiana filed rebuttal testimony in August 2026. In October 2026, Entergy Louisiana filed a motion requesting to suspend all remaining procedural deadlines without date, noting the significant number of dockets currently pending before the LPSC, including many initiated by Entergy Louisiana, and the need for thorough review of these matters. In October 2026 the presiding ALJ issued an order granting the motion and suspending the procedural schedule, including continuing the hearing in the matter without date.

As discussed in the Form 10-K, in March 2020 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2016 through 2019. The LPSC staff issued its audit report in September 2021, and although certain internal record keeping recommendations were made, the LPSC staff did not recommend any disallowances. In October 2026 the LPSC staff and Entergy Louisiana filed a joint audit report addressing the issues identified in the LPSC staff’s September 2021 audit report and stating that there were no unresolved issues. The LPSC voted to approve the joint audit report at its October 2026 Business and Executive Session.

As discussed in the Form 10-K, in June 2025 the LPSC staff provided notice of an audit of Entergy Louisiana’s purchased gas adjustment clause filings (for Entergy Louisiana’s gas operations). The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for the period from January 2023 through June 2025. The LPSC staff issued its audit report in March 2026. In October 2026 the LPSC staff and Entergy Louisiana filed a joint audit report. The joint audit report noted that an issue identified in its March 2026 report had been addressed and that, as a result, there were no outstanding unresolved issues. The joint audit report recommended and requested that an LPSC order be issued finding that all costs included in Entergy Louisiana’s purchased gas adjustment filings in the audit period were reasonable, prudent, and necessary and in compliance with applicable LPSC orders, and thus were appropriately eligible for recovery from customers. The LPSC voted to approve the joint audit report at its October 2026 Business and Executive Session.

In February 2026, Entergy Louisiana, in its monthly filing to update its fuel adjustment clause, requested to defer approximately $141.9 million of fuel costs incurred in January 2026 that were primarily attributable to the effects of Winter Storm Fern, consistent with the LPSC’s general order approved at its February 2026 meeting permitting temporary modifications to the LPSC’s fuel adjustment clause general order. The filing proposed to defer the recovery of these fuel costs over a four-month period from March 2026 through June 2026 to mitigate the customer bill impacts of these fuel costs. In March 2026 the LPSC issued a special order delegating authority to the LPSC executive secretary to review and approve utility-specific requests for deferral of fuel costs from Winter Storm Fern, subject to audit as per the LPSC’s fuel clause general order. In April 2026 the LPSC executive secretary approved Entergy Louisiana’s request for deferral.

In April 2026 the LPSC staff provided notice of an audit of Entergy Louisiana’s fuel adjustment clause filings. The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s fuel adjustment clause for the period from 2023 through 2025. Discovery is ongoing, and no audit report has been filed.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters. The following is an update to that discussion.

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

In August 2026 the NRC issued a final significance determination and notice of violation for River Bend, in which it finalized a “white” finding with “low safety significance” related to one of the service water pumps at River Bend, resulting in River Bend’s placement in Column 2, effective third quarter 2026. River Bend will remain in Column 2 until the satisfactory completion of an NRC supplemental inspection.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Louisiana’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

See the “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements and the “New Accounting Pronouncements” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of new accounting pronouncements.