ENTERGY ARKANSAS, LLC

ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES

Net income increased $26.6 million primarily due to higher volume/weather, higher retail electric price, and higher revenues resulting from the return on construction work in progress for certain utility plant investments. The increase was partially offset by$15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement, higher other operation and maintenance expenses, and higher interest expense.

Net income increased $83.9 million primarily due to higher retail electric price, higher revenues resulting from the return on construction work in progress for certain utility plant investments, higher volume/weather, a regulatory charge, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance, and higher other income. The increase was partially offset by higher interest expense, higher other operation and maintenance expenses, and$15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

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

The volume/weather variance is primarily due to the effect of favorable weather on residential and commercial sales and an increase in industrial usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily data center customers.

The retail electric price variance is primarily due toan increase in formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the interim facilities rate adjustment filing.

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 purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

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

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

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

The retail electric price variance is primarily due toan increase in formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026. See Note 2 to the financial statements in the Form 10-K for discussion of the interim facilities rate adjustment filing.

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, residential, and commercial usage. The increase in industrial usage is primarily due to an increase in demand from large industrial customers, primarily data center customers.

The purchased power agreement termination proceeds variance represents $15 million of liquidated damages recognized in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

Total electric energy sales for Entergy Mississippi for thenine months ended September 30, 2026 and 2025 are as follows:

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

•an increase of $4 million in non-nuclear generation expenses primarily due to a higher scope of work performed, including during plant outages, in 2026 as compared to 2025;

•an increase of $3.4 million in power delivery expenses primarily due to higher vegetation maintenance costs; and

Other income increased primarily due to an increase of $6.5 million in the amortization of tax gross-up on customer advances, including customer advances for construction.

Interest expense increased primarily due to the issuance of $650 million of 5.05% Series mortgage bonds in March 2026.

•an increase of $7 million in power delivery expenses primarily due to higher vegetation maintenance costs and increased contract labor costs;

•an increase of $4.1 million in non-nuclear generation expenses primarily due to a higher scope of work performed, including during plant outages, in 2026 as compared to 2025;

•an increase of $2.9 million in compensation and benefits costs primarily due to higher healthcare claims activity and the timing of the recognition of prescription drug rebates;

•an increase of $1.9 million in energy efficiency costs; and

The increase was partially offset by a decrease of $3.9 million in storm damage provisions. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of storm cost recovery.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other regulatory charges (credits) – net includes a regulatory charge of $21 million, recorded in first quarter 2025, to reflect an adjustment to the grid modernization over/under recovery deferral balance.

Other income increased primarily due to an increase of $14.7 million in the amortization of tax gross-up on customer advances, including customer advances for construction, and an increase of $8.5 million in interest earned on money pool investments. The increase was partially offset by a decrease in the allowance for equity funds used during construction due to lower construction work in progress in 2026.

Interest expense increased primarily due to the issuance of $650 million of 5.05% Series mortgage bonds in March 2026 and the issuance of $600 million of 5.80% Series mortgage bonds in March 2025.

The effective income tax rates were 25.3% for the third quarter 2026 and 24.8% for thenine months ended September 30, 2026. The differences in the effective income tax rates for thethird quarter 2026 and thenine months ended September 30, 2026 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rates were 24.1% for the third quarter 2025 and 23.9% for the nine months ended September 30, 2025. The differences in the effective income tax ratesfor the third quarter 2025 and thenine months ended September 30, 2025 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

Net cash flow provided by operating activities increased $208.3 millionfor the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to higher collections from customers andan increase of $159.7 million in receipts of advance payments related to customer agreements, including $133.8 million in customer advances and $25.9 million in tax gross-up on customer advances for construction. The increase was partially offset by:

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

•the timing of payments to vendors;

•an increase of $18.7 million in non-capital storm spending primarily due to Winter Storm Fern restoration efforts in 2026. See Note 2 to the financial statements herein for discussion of the storm cost recovery filing made by Entergy Mississippi in October 2026;

•higher ad valorem tax payments as a result of increased assessments in 2026; and

•the receipt of a $15 million liquidated damages payment in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

Net cash flow used in investing activities increased $301.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•an increase of $316.8 million in non-nuclear generation construction expenditures primarily due to higher spending on the Penton Solar project and the Traceview Advanced Power Station project;

•an increase of $68.3 million in capital expenditures related to storm restoration primarily due to Winter Storm Fern restoration efforts in 2026. See Note 2 to the financial statements herein for discussion of the storm cost recovery filing made by Entergy Mississippi in October 2026; and

•the receipt of a $14.5 million initial payment for the sale of transmission rights and excess land related to Entergy Mississippi’s interest in the Independence power plant in third quarter 2025.

The increase was partially offset by money pool activity.

Decreases in Entergy Mississippi’s receivable from the money pool are a source of cash flow, and Entergy Mississippi’s receivable from the money pool decreased $3.4 million for the nine months ended September 30, 2026 compared to increasing by $68.9 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 $193.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due tothe issuance of $650 million of 5.05% Series mortgage bonds in March 2026 and an increase of $135.5 million in capital contributions received from Entergy Corporation in 2026 as compared to 2025 in order to maintain Entergy Mississippi’s capital structure. The increase was partially offset bythe issuance of $600 million of 5.80% Series mortgage bonds in March 2025. See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

Entergy Mississippi’s debt to capital ratio is shown in the following table.

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

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

Entergy Mississippi is developing its capital investment plan for 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 Mississippi includes investments in generation projects to modernize, decarbonize, expand, and diversify Entergy Mississippi’s portfolio, as well as to support customer growth, including Delta Blues Advanced Power Station, Delta Solar, Penton Solar, Traceview Advanced Power Station, Vicksburg Advanced Power Station, and battery energy storage systems; 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 Mississippi is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and 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 Mississippi’s receivables from the money pool were as follows:

Entergy Mississippihas a credit facility in the amount of$300 million scheduled to expire in June 2031. The credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of September 30, 2026, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Mississippi is a party to two uncommitted letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. As of September 30, 2026,$125.6 million in MISO letters of credit and$1.3 million in non-MISO letters of credit were outstanding under Entergy Mississippi’s uncommitted letter of credit facilities. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

Additional Generation and Transmission Resources

As discussed in the Form 10-K, in March 2024, Entergy Mississippi executed a large customer supply and service agreement to serve two data center campuses located in Madison County, Mississippi in which Amazon Web Services is investing. In February 2025, Entergy Mississippi executed a large customer supply and service agreement to serve a data center campus located in Warren County, Mississippi in which Amazon Web Services is investing. In April 2026, Amazon Web Services announced the expansion of the data center campuses located in Madison County, Mississippi. The February 2025 agreement will apply to this expansion. Also, in April 2026, Entergy Mississippi executed a large customer supply and service agreement to serve a data center campus located in Hinds County, Mississippi in which Amazon Web Services is investing. Consistent with Entergy Mississippi’s Fair Share Plus guidelines, the large customer supply and service agreements are structured to ensure that the customer pays its incremental cost to serve and include protections in the event of early termination.

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.

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 is an update to that discussion.

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 reflected no change in formula rate plan revenues. The 2025 look-back filing compared actual 2025 results to the approved benchmark return on rate base and reflected no change in formula rate plan revenues, although Entergy Mississippi proposed to adjust interim rates by $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 in no 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 in no 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.

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 – Environmental Risks” in the Form 10-K for a discussion of environmental risks.

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

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 NEW ORLEANS, LLC AND SUBSIDIARIES

Net income increased $18.7 million primarily due toa $12.8 million ($9.6 million net-of-tax) charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered from customers, higher volume/weather, higher retail electric price, and lower interest expense, partially offset by higher other operation and maintenance expenses. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy New Orleans natural gas distribution business on July 1, 2025.

Net income increased $10.3 million primarily due toa $12.8 million ($9.6 million net-of-tax) charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered from customers. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy New Orleans natural gas distribution business on July 1, 2025.

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

The volume/weather variance is primarily due to an increase in residential usage.

The retail electric price variance is primarily due to an increase in formula rate plan rates resulting from an increase in the resilience and storm hardening cost recovery rider revenue requirement effective January 2026. See

Note 2 to the financial statements herein for discussion of the resilience and storm hardening cost recovery rider filing.

Total electric energy sales for Entergy New Orleans 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 New Orleans’s operating revenues.

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

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 New Orleans natural gas distribution business on July 1, 2025.

The retail electric price variance is primarily due to a decrease in formula rate plan rates effective September 2025 in accordance with the terms of the 2025 formula rate plan filing. See Note 2 to the financial statements in the Form 10-K for discussion of the formula rate plan filing.

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

Total electric energy sales for Entergy New Orleans 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 New Orleans’s operating revenues.

•an increase of $2.5 million in energy efficiency expenses primarily due to the timing of recovery from customers;

•a $2.4 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 New Orleans’s natural gas distribution business on July 1, 2025; and

Asset write-offs includes a $12.8 million charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered from customers. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Interest expense decreased primarily due to a decrease of $2.3 million in carrying costs on regulatory liability balances.

Other operation and maintenance expenses decreased primarily due to a decrease of $6.2 million in gas operations expenses resulting from the absence of expenses following the sale of the natural gas distribution business on July 1, 2025 and a decrease of $2.6 million in non-nuclear generation expenses primarily due to a lower scope of work performed during plant outages in 2026 as compared to 2025. The decrease was partially offset by an increase of $2.6 million in energy efficiency expenses primarily due to the timing of recovery from customers and a $2.4 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 New Orleans’s natural gas distribution business on July 1, 2025.

Asset write-offs includes a $12.8 million charge, recorded in third quarter 2025, to reflect the write-off of retained natural gas plant assets that were not included in the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and which will not be recovered. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025.

Taxes other than income taxes decreased primarily due to a decrease in franchise fees as a result of lower retail revenues in 2026 as compared to 2025, including the absence of natural gas revenues in 2026 following the sale of Entergy New Orleans’s natural gas distribution business on July 1, 2025, and the repeal of the Louisiana corporation franchise tax, effective January 2026, as a result of state legislation enacted in December 2024. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Entergy New Orleans natural gas distribution business on July 1, 2025.

Depreciation and amortization expenses decreased primarily due to the absence of depreciation and amortization expenses associated with natural gas plant in service 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 New Orleans natural gas distribution business on July 1, 2025.

Interest expense decreased primarily due to a decrease of $8.3 million in carrying costs on regulatory liability balances.

The effective income tax rate was 24.5% for the third quarter 2026 and 22.1% 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 accrual for state income taxes and a provision for uncertain tax positions, 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 25.5% for the third quarter 2025. The difference in the effective income tax rate for the third quarter 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes.

The effective income tax rate was 24.6% for the nine months ended September 30, 2025. The difference in the effective income tax rate for the nine months ended September 30, 2025 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

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 New Orleans natural gas distribution business on July 1, 2025.

Net cash flow provided by operating activities decreased $20.3 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to lower collections from customers, partially offset by lower fuel and purchased power payments in 2026 as compared to 2025 and the timing of payments to vendors.

Entergy New Orleans’s investing activities used $111.8 million for the nine months ended September 30, 2026 compared to providing $156.9 million for the nine months ended September 30, 2025 primarily due to the following activity:

•the receipt of $288.3 million in proceeds from the sale of the natural gas distribution business on July 1, 2025;

•an increase of $28.7 million in distribution construction expenditures primarily due to increased investment in the resilience and reliability of the distribution system;

•the receipt of $10.3 million from the storm reserve escrow account in 2025;

•a decrease of $8.8 million in gas operations construction expenditures resulting from the absence of construction expenditures following the sale of the natural gas distribution business on July 1, 2025;

•money pool activity; and

•a decrease of $22.4 million in non-nuclear generation construction expenditures primarily due to a lower scope of work during plant outages performed in 2026 as compared to 2025.

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

Decreases in Entergy New Orleans’s receivable from the money pool are a source of cash flow, and Entergy New Orleans’s receivable from the money pool decreased by $5.9 million for the nine months ended September 30, 2026 compared to increasing by $14.7 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.

Entergy New Orleans’s financing activities provided $3.2 million for the nine months ended September 30, 2026 compared to using $217.7 million the nine months ended September 30, 2025 primarily due to the following activity:

•$140 million in common equity distributions paid in 2025 in order to maintain Entergy New Orleans’s capital structure;

•the issuances of $55 million of 6.65% Series mortgage bonds and $35 million of 5.91% Series mortgage bonds, each in May 2026;

•the repayment, at maturity, of $78 million of 3.00% Series mortgage bonds in March 2025; and

•the repayment of $85 million of 4% Series mortgage bonds in June 2026.

Entergy New Orleans’s debt to capital ratio is shown in the following table. The decrease in the debt to capital ratio for Entergy New Orleans is primarily due to net income in 2026.

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

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

Entergy New Orleans is developing its capital investment plan for 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 New Orleans includes distribution and Utility support spending to improve reliability, resilience, and customer experience; transmission spending to improve reliability and resilience; and other investments. Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements, governmental 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 New Orleans is not able to predict the effect of potential changes in regulation and law, changes to governmental programs, such as loans, grants, guarantees, and other subsidies, and 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 New Orleans’s receivables from the money pool were as follows:

Entergy New Orleans has a credit facility in the amount of $25 million scheduled to expire in June 2027. The credit facility includes fronting commitments for the issuance of letters of credit against $10 million of the borrowing capacity of the facility. As of September 30, 2026, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy New Orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of September 30, 2026, a $0.5 million letter of credit was outstanding under Entergy New Orleans’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

State and Local Rate Regulation

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

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-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” in Note 2 to the financial statements herein 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 a four-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.

Distributed Energy Resource Program

As discussed in the Form 10-K, in October 2024 the City Council opened a docket to evaluate potential opportunities to increase the availability of distributed energy resources, battery storage, and related facilities in New Orleans. In December 2025 the City Council issued a resolution establishing a distributed energy resources program to be implemented and operated under the existing Energy Smart program, with $28 million in customer incentives available through credits funded by the settlement between System Energy and the City Council. In March 2026, as required by the City Council, Entergy New Orleans submitted to the City Council a proposed battery storage implementation plan, in which program costs would be offset by credits from the System Energy settlement, with no incremental impact on customer rates. See “Complaints Against System Energy - System Energy Settlement with the City Council” in Note 2 to the financial statements in the Form 10-K for discussion of the System Energy settlement with the City Council.

An intervenor in the proceeding challenged the plan submitted by Entergy New Orleans and sought additional incentives for participating customers, including accelerated use of the credits. In July 2026 certain stakeholders submitted comments in support of that intervenor’s position. In August 2026 the City Council’s advisors issued a report that, among other things, summarized the parties’ positions and identified various issues for determination by the City Council.

In October 2026 the City Council approved a resolution that increased the amount of upfront incentives for participating customers and did not clearly address the total cost of ongoing customer incentives, such that all incentives and costs associated with the program could exceed the credits from the System Energy settlement, in which case incremental costs would have to be borne more broadly by customers through rates, including those customers who do not participate in the program. Pursuant to the resolution, Entergy New Orleans expects to submit an implementation plan to the City Council in November 2026, providing for implementation by the end of first quarter 2027. The resolution further directs Entergy New Orleans and the City Council’s advisors to collaborate to develop certain protections for customers participating in the program and to report to the City Council on such efforts in November 2026.

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 - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy New Orleans’s accounting for utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

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.