ENTERGY ARKANSAS, LLC

DEFINITIONS

Certain abbreviations or acronyms used in the text and notes are defined below:

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DEFINITIONS (Concluded)

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Entergy operates primarily through a single reportable segment, Utility. The Utility segment 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 New Orleans and Entergy Louisiana natural gas distribution businesses on July 1, 2025. See Note 7 to the financial statements herein for discussion of and financial information regarding Entergy’s reportable segment.

In January 2026, portions of Entergy’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’s infrastructure. Entergy’s cost of mobilizing crews and restoring power was approximately $450 million, including approximately $375 million in capital costs and approximately $75 million in non-capital costs. The impacts were primarily at Entergy Louisiana and Entergy Mississippi. There are well-established mechanisms and precedent for addressing these catastrophic events and providing the process for regulatory review of storm costs for prudence and for recovery of prudently incurred storm costs in accordance with applicable regulatory and legal princ iples. See Note 2 to the financial statements herein for discussion of Entergy Louisiana’s restoration costs from Winter Storm Fern included in its 2025 formula rate plan filing and for discussion of Entergy Mississippi’s storm cost recovery filing in October 2026.

The severe weather event also affected the market for natural gas due to the effects of severe cold on the gas supply system and increased demand for gas to support electricity loads. Natural gas purchases in January 2026 for Entergy were $483 million, including $74 million for Entergy Arkansas, $256 million for Entergy Louisiana, $85 million for Entergy Mississippi, $20 million for Entergy New Orleans, and $48 million for Entergy Texas. This compares to natural gas purchases in January 2025 for Entergy of $207 million, including $25 million for Entergy Arkansas, $115 million for Entergy Louisiana, $28 million for Entergy Mississippi, $4 million for Entergy New Orleans, and $35 million for Entergy Texas. The Utility operating companies each have fuel recovery mechanisms in place to recover their natural gas costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel cost recovery at the Utility operating companies.

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the third quarter 2026 to the third quarter 2025 showing how much the line item increased or (decreased) in comparison to the prior period.

(a)Parent & Other includes eliminations, which are primarily intersegment activity.

Utility

The Utility operating companies’ 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 January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026, each at Entergy Arkansas;

•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, each at Entergy Louisiana;

•an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026; and

•increases in the distribution cost recovery factor rider effective December 2025 and July 2026 and an increase in the transmission cost recovery factor rider effective April 2026, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

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

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 by Entergy Mississippi in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

Total electric energy sales for Utility 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 operating revenues.

Other Income Statement Items

Utility

Other operation and maintenance expenses increased from $764 million for the third quarter 2025 to $825 million for the third quarter 2026 primarily due to:

•an increase of $14 million in power delivery expenses primarily due to higher vegetation maintenance costs;

•a $13 million gain, recorded in third quarter 2025, resulting from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025, which included the derecognition of $7 million of goodwill attributed to the businesses sold. 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;

•an increase of $11 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 $8 million in compensation and benefits costs primarily due to higher healthcare claims activity;

•an increase of $7 million in energy efficiency expenses primarily due to the timing of recovery from customers; and

The increase was partially offset by the expensing of $11 million at Entergy Louisiana 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 Entergy Louisiana’s Bayou Power Station project.

Asset write-offs, impairments, and related charges includes a $13 million charge, recorded in third quarter 2025 at Entergy New Orleans, 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.

Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates at Entergy Arkansas and Entergy Louisiana effective January 2026, and increases in nuclear depreciation rates at Entergy Louisiana 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 Entergy Louisiana global stipulated settlement agreement.

Entergy 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 $23 million in interest earned on money pool investments and an increase of $23 million in the amortization of tax gross-up on customer advances, including customer advances for construction.

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

•the issuances by Entergy Louisiana of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026;

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

•the issuance by Entergy Mississippi of $650 million of 5.05% Series mortgage bonds in March 2026;

•the issuance by Entergy Texas of $425 million of 5.20% Series mortgage bonds in May 2026;

•an increase of $24 million in carrying costs on customer advances, including customer advances for construction; and

•$8 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 by Entergy Arkansas of $600 million of 3.5% Series mortgage bonds in February 2026.

Parent and Other

Interest expense increased primarily due to the issuances of junior subordinated debentures totaling $1.3 billion in November 2025 and the issuances of junior subordinated debentures totaling $1.5 billion in August 2026.

The effective income tax rate was 22.8% 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 and a provision for uncertain tax positions, partially offset by book and tax differences related to the allowance for equity funds used during construction, the amortization of excess accumulated deferred income taxes, andcertain book and tax differences related to utility plant items.

The effective income tax rate was 22.7% 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 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.

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the nine months ended September 30, 2026 to the nine months ended September 30, 2025 showing how much the line item increased or (decreased) in comparison to the prior period.

(a)Parent & Other includes eliminations, which are primarily intersegment activity.

Utility

The Utility operating companies’ 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 January 2026 and the implementation of the Generating Arkansas Jobs Act rider effective June 2026, each at Entergy Arkansas;

•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, each at Entergy Louisiana;

•an increase in Entergy Mississippi’s formula rate plan rates resulting from an increase in interim facilities rate adjustment revenues effective January 2026; and

•increases in the distribution cost recovery factor rider effective June 2025, December 2025, and July 2026 and an increase in the transmission cost recovery factor rider effective April 2026, each at Entergy Texas.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the regulatory proceedings discussed above.

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

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 by Entergy Mississippi in third quarter 2025 resulting from a counterparty’s termination of a purchased power agreement.

The effect of sale of natural gas distribution businesses variance represents the decrease in operating revenues resulting from the absence of natural gas revenues at Entergy Louisiana and Entergy New Orleans following the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025. The decrease in natural gas operating revenues is substantially offset in net income by the absence of operating expenses related to the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses following the sale. 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.

Total electric energy sales for Utility 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 operating revenues.

Other Income Statement Items

Utility

•$27 million of higher unrecovered costs in 2025, at Entergy Texas, related to the procurement of capacity through MISO’s annual planning resource auction. Higher costs in 2025 resulted from the effect of a significant increase in MISO’s seasonal auction clearing price, due to the implementation of a reliability-based demand curve, for capacity transactions during the summer months in 2025. Prior to June 2026, Entergy Texas also did not have the ability to recover its MISO capacity costs incurred to date beyond the level included in base rates. In June 2025, Texas legislation established a capacity cost recovery rider mechanism that would allow for the recovery of costs related to the procurement of capacity through MISO’s annual planning resource auction outside of base rates, through a rider that is updated annually. In May 2026, Entergy Texas filed a request with the PUCT for a capacity cost recovery rider to recover eligible capacity procurement costs associated with its participation in MISO’s annual planning resource auction, and the PUCT approved the request in July 2026. See Note 2 to the financial statements herein for discussion of Entergy Texas’s capacity cost recovery rider; and

•$19 million of unrecovered capacity cost charges in 2026, at Entergy Texas, under a new short-term, one-year power purchase agreement beginning in June 2026.

Other operation and maintenance expenses increased from $2,140 million for the nine months ended September 30, 2025 to $2,246 million for the nine months ended September 30, 2026 primarily due to:

•an increase of $48 million in power delivery expenses primarily due to higher vegetation maintenance costs and increased contract labor costs;

•an increase of $28 million in compensation and benefits costs primarily due to higher healthcare claims activity, the timing of recognition of prescription drug rebates, and a larger revision to estimated incentive-based compensation expense in 2025;

•a $13 million gain, recorded in third quarter 2025, resulting from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses on July 1, 2025, which included the derecognition of $7 million of goodwill attributed to the businesses sold. 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; and

The increase was partially offset by a decrease of $20 million in insurance expense primarily due to higher nuclear insurance refunds.

Asset write-offs, impairments, and related charges includes a $13 million charge, recorded in third quarter 2025 at Entergy New Orleans, 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.

Depreciation and amortization expenses increased primarily due to additions to plant in service, an increase in FERC jurisdictional depreciation rates at Entergy Arkansas and Entergy Louisiana effective January 2026, and increases in nuclear depreciation rates at Entergy Louisiana 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 Entergy Louisiana global stipulated settlement agreement.

Entergy 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 2026;

•an increase of $61 million in the amortization of tax gross-up on customer advances, including customer advances for construction;

•an increase of $50 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 Orange County Advanced Power Station project and the Lone Star Power Station project, each at Entergy Texas. The increase was partially offset by lower construction work in progress in 2026 on the Legend Power Station project as a result of the sale of assets related to the in-process project in December 2025, at Entergy Texas. See Note 8 to the financial statements in the Form 10-K for discussion of the Entergy Texas build-to-suit lease arrangement for the Legend Power Station.

•a $17 million true-up, recorded in second quarter 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. See Note 2 to the financial statements in the Form 10-K for discussion of the 2024 formula rate plan filing; and

•a decrease of $14 million in intercompany dividend income from affiliated preferred membership interests related to storm cost securitization. The intercompany dividend income from the affiliated preferred membership interests is eliminated for consolidation purposes and has no effect on net income since the investment is in another Entergy subsidiary. See Note 2 to the financial statements in the Form 10-K for discussion of Entergy Louisiana’s storm cost securitizations.

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

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

•the issuances by Entergy Louisiana of $750 million of 5.65% Series mortgage bonds and $750 million of 4.90% Series mortgage bonds, each in February 2026;

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

•the issuance by Entergy Mississippi of $650 million of 5.05% Series mortgage bonds in March 2026;

•the issuance by Entergy Mississippi of $600 million of 5.80% Series mortgage bonds in March 2025;

•the issuance by Entergy Texas of $500 million of 5.25% Series mortgage bonds in February 2025;

•the issuance by Entergy Texas of $425 million of 5.20% Series mortgage bonds in May 2026;

•the issuance by System Energy of $240 million of 5.30% Series mortgage bonds in May 2025;

•an increase of $46 million in carrying costs on customer advances, including customer advances for construction; and

•$25 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 by Entergy Arkansas of $600 million of 3.5% Series mortgage bonds in February 2026 and the repayment by Entergy Louisiana of $250 million of 4.44% Series mortgage bonds in January 2026.

Parent and Other

Asset write-offs, impairments, and related charges includes an $18 million non-cash impairment charge recognized in first quarter 2026 related to the sale of the non-utility operations businesses’ interest in the Independence power plant in April 2026.

Other income (deductions) increased primarily due to a decrease of $14 million in the amount of the elimination for consolidation purposes of intercompany dividend income from affiliated preferred membership interests, as discussed above.

Interest expense increased primarily due to the issuances of junior subordinated debentures totaling $1.3 billion in November 2025 and the issuances of junior subordinated debentures totaling $1.5 billion in August 2026.

The effective income tax rate was 21.4% for thenine months ended September 30, 2026. The difference in the effective income tax rate for thenine months ended September 30, 2026 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction, certain book and tax differences related to utility plant items, andthe amortization of excess accumulated deferred income taxes.

The effective income tax rate was 22.5% for thenine months ended September 30, 2025. The difference in the effective income tax rate for thenine 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 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.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy’s capital structure, capital spending plans and other uses of capital, and sources of capital.

Capital Structure and Resources

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

(a)Calculation excludes the Texas securitization bonds, which are non-recourse to Entergy Texas.

As of September 30, 2026, 18.7% of the debt outstanding is at the parent company, Entergy Corporation, and 81.3% is at the Utility segment. Net debt consists of debt less cash and cash equivalents. Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt, equity, and subsidiaries’ preferred stock without sinking fund. Net capital consists of capital less cash and cash equivalents. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy’s financial condition because the securitization bonds are non-recourse to Entergy, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy also uses the net debt to net capital ratio excluding securitization bonds in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy’s financial condition because net debt indicates Entergy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

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 were no 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. The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above. Entergy is currently in compliance with the covenant and expects to remain 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. See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’ credit facilities.

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%.

Equity Issuances and Equity Distribution Program

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program” in the Form 10-K and Note 3 to the financial statements herein for discussion of equity issuances, the equity distribution program, and equity forward sale agreements. The following are updates to that discussion.

In February 2026, Entergy Corporation physically settled a portion of its obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $346 million.

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. 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.

In June 2026, Entergy Corporation physically settled its remaining obligations under certain of its then-outstanding forward sale agreements under its at the market equity distribution program for cash proceeds of $126 million and physically settled a portion of its obligations under certain of its then-outstanding equity forward sale agreements for cash proceeds of $546 million.

In September 2026, Entergy Corporation physically settled its remaining obligations under certain of its then-outstanding equity forward sale agreements for cash proceeds of $913 million.

Entergy Corporation currently expects to issue approximately $5.2 billion of equity from 2027 through 2030, which it may issue under its at the market equity distribution program or otherwise, with approximately $2.2 billion already contracted under forward sale agreements as of September 30, 2026.

Winter Storm Fern (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.

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 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.

Capital Expenditure Plans and Other Uses of Capital

See the table and discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital,” that sets forth the amounts of Entergy’s planned construction and other capital investments for 2026 through 2029. The following are updates to that discussion.

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

The capital plan includes amounts Entergy plans to spend on routine capital projects that are necessary to support reliability of its service, equipment, or systems and to support normal customer growth. In addition to routine capital projects, the capital plan also includes amounts Entergy plans to spend on non-routine capital investments for which Entergy is either contractually obligated, has Board approval, or otherwise expects to make to satisfy regulatory or legal requirements. Amounts include the following types of construction and capital investments:

•investments in generation projects to modernize, decarbonize, expand, and diversify the Utility operating companies’ portfolios, as well as to support customer growth, including Ironwood Power Station, Jefferson Power Station, the White Bluff Unit 1 fuel conversion, Arkansas Cypress Solar, 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, Delta Blues Advanced Power Station, Delta Solar, Penton

Solar, Traceview Advanced Power Station, Vicksburg Advanced Power Station, Lone Star Power Station, Legend Power Station, battery energy storage systems, and potential construction of additional generation;

•investments in the Utility nuclear fleet;

•transmission spending to improve reliability and resilience while also supporting renewables expansion and customer growth; and

•distribution and Utility support spending to improve reliability, resilience, and customer experience through projects focused on asset renewals and enhancements and grid stability.

Estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of business restructuring, regulatory constraints and requirements, governmental policies and actions, including trade-related governmental actions, such as tariffs, executive orders, and other measures, including recent Executive Order 14421 relating to protecting United States bulk-power systems from foreign actors (Executive Order 14421) and the August 6, 2026 proclamation issued under Section 232 relating to minimum import prices and tariffs for polysilicon and certain derivative products (the Section 232 Proclamation), environmental regulations, business opportunities, market volatility, economic trends, 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 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.

Renewables

Entergy Arkansas 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.

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

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.

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.

Entergy Louisiana 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.

Entergy Mississippi 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.

Cypress to Legend 500 kV Transmission Line

As discussed in the Form 10-K, in May 2025, Entergy Texas filed an application seeking PUCT approval to amend Entergy Texas’s certificate of convenience and necessity to construct, own, and operate a new single-circuit 500 kV transmission line. The transmission line is expected to be approximately 40 to 49 miles in length and the estimated cost of the project ranges from $392.7 million to $436.2 million, depending on the route ultimately approved by the PUCT. In June 2025 the PUCT referred the proceeding to the State Office of Administrative Hearings and a hearing on the merits was held in August 2025. In October 2025 the ALJs with the State Office of Administrative Hearings issued a proposal for decision recommending the PUCT approve Entergy Texas’s application to construct the transmission line and recommending the PUCT’s approval include selection of a specific route with an estimated cost of $398.7 million. In December 2025 the PUCT issued a final order approving the requested amendment to Entergy Texas’s certificate of convenience and necessity to construct, own, and operate the new single-circuit 500 kV transmission line, and selecting the final route previously recommended. In February 2026, landowners not party to the PUCT proceeding filed in the 345 th District Court of Travis County, Texas a petition for declaratory relief and temporary and permanent injunction against the PUCT’s final order. The petition, which names the PUCT, its commissioners, and Entergy Texas as defendants, challenges Entergy Texas’s notice, the application of the PUCT’s notice rule, and the PUCT order’s approval of a route the petitioners assert was not adequately noticed. In March 2026, Entergy Texas and the PUCT filed answers disputing all aspects of the petition. In April 2026 petitioners filed an amended petition with minor adjustments to their original petition. In May 2026 petitioners filed a supplemental application for temporary injunction and opposition to pleas to the jurisdiction in response to jurisdictional defenses raised in the answers filed by Entergy Texas and the PUCT. In June 2026 the court set a hearing for July 2026 on petitioners’ requested temporary injunction and any pleas to the jurisdiction and motions for summary judgment. In June 2026 the PUCT filed its plea to the jurisdiction. In June 2026 petitioners filed a motion for summary judgment and Entergy Texas filed an amended answer addressing the amended petition, a plea to the jurisdiction, and, in the alternative, a motion for summary judgment. In July 2026 the court issued a written order granting Entergy Texas’s and the PUCT’s pleas to the jurisdiction and, in the alternative, Entergy Texas’s motion for summary judgment. In August 2026 petitioners filed a notice of appeal to the Fifteenth Court of Appeals. In October 2026 the appellate record was filed with the Fifteenth Court of Appeals, triggering a 30-day deadline for the appellants to file a brief on the merits. Also in October 2026, the appellants filed a motion for temporary relief requesting that Entergy Texas be restrained from exercising eminent domain and construction activities on the appellants’ properties. Entergy Texas expects to respond in opposition to the motion for temporary relief by the November 2026 deadline established by the court. Subject to receipt of required permits and other conditions, the project is expected to be in service by the end of 2028.

Dividends

Declarations of dividends on Entergy Corporation common stock are made at the discretion of the Board. Among other things, the Board evaluates the level of Entergy Corporation common stock dividends based upon earnings per share from the Utility segment and the Parent and Other portion of the business, financial strength, and future investment opportunities. In October 2026 the Board declared a dividend of $0.68 per share.

Cash Flow Activity

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the nine months ended September 30, 2026 and 2025 were as follows:

Net cash flow provided by operating activities increased $1,025 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due toan increase of $1,172 million in receipts of advance payments related to customer agreements, including $1,022 million in customer advances and $150 million in tax gross-up on customer advances for construction, and higher collections from Utility customers. The increase was partially offset by:

•the receipt of $224 million in proceeds from the transfer of 2025 nuclear production tax credits to third parties in 2026 as compared to the receipt of $405 million in proceeds from the transfer of 2024 nuclear and solar production tax credits to third parties in 2025. See Note 10 to the financial statements herein and Note 3 to the financial statements in the Form 10-K for discussion of the nuclear and solar 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;

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

•an increase of $48 million in interest paid.

Net cash flow used in investing activities increased $2,630 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•an increase of $1,391 million in non-nuclear generation construction expenditures primarily due to higher spending by Entergy Arkansas on the Jefferson Power Station project, the Ironwood Power Station project, and the Arkansas Cypress Solar project, by Entergy Louisiana 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, and by Entergy Mississippi on the Penton Solar project and the Traceview Advanced Power Station project; partially offset by lower spending by Entergy Texas on the Legend Power Station project as a result of the sale of assets related to the in-process project in December 2025 and lower spending on the Orange County Advanced Power Station project in 2026. See Note 8 to the financial statements in the Form 10-K for discussion of the Entergy Texas build-to-suit lease arrangement for the Legend Power Station;

•the receipt of $491 million in proceeds from the sale of the Entergy Louisiana and Entergy New Orleans natural gas distribution businesses 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 and Entergy New Orleans natural gas distribution businesses on July 1, 2025;

•an increase of $390 million in transmission construction expenditures primarily due to higher spending by Entergy Louisiana on the Amite South transmission projects and increased spending on various other Utility transmission projects;

•an increase of $181 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;

•an increase of $101 million in nuclear fuel purchases 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;

•an increase of $75 million in distribution construction expenditures primarily due to increased investment in the resilience of the distribution system; and

•payments to storm reserve escrow accounts of $8 million in 2026 compared to net receipts from storm reserve escrow accounts of $34 million in 2025.

•cash collateral of $63 million returned by MISO to the Utility operating companies in 2026 as compared to $44 million posted to MISO by the Utility operating companies in 2025. The Utility operating companies have the ability to post cash collateral as a means to support their obligations to MISO and for other purposes; and

•a decrease of $56 million in decommissioning trust fund investment activity.

Net cash flow provided by financing activities increased $3,224 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to:

•long-term debt activity providing approximately $4,377 million of cash in 2026 compared to providing approximately $1,013 million of cash in 2025;

•$1,930 million in net proceeds from the issuance of common stock in forward contracts under the at the market equity distribution program and the settlement of equity forward sale agreements in 2026 compared to $805 million in net proceeds from the issuance of common stock under the at the market equity distribution program in 2025; and

•an increase of $132 million in net customer advances for construction related to transmission, distribution, and generator interconnection agreements.

•net repayments of $526 million of commercial paper in 2026 as compared to net issuances of $488 million of commercial paper in 2025;

•a $248 million payment by Entergy Texas in June 2026 associated with a financed portion of construction work in progress related to the Orange County Advanced Power Station; and

•an increase of $100 million in common stock dividends paid in 2026 as compared to 2025 as a result of an increase in the dividend paid per share and an increase in the number of shares outstanding.

See Note 3 to the financial statements herein and Note 7 to the financial statements in the Form 10-K for discussion of the equity issuances, the equity distribution program, and the equity forward sale agreements. See Note 4 to the financial statements herein and Notes 4 and 5 to the financial statements in the Form 10-K for details of Entergy’s commercial paper program and long-term debt.

Rate, Cost-recovery, and Other Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings.

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings.

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings.

Market and Credit Risk Sensitive Instruments

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Market and Credit Risk Sensitive Instruments” in the Form 10-K for a discussion of market and credit risk sensitive instruments. The following are updates to that discussion.

Some of the agreements to sell the power produced by Entergy’s non-utility operations business contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under such agreements. The primary form of credit support used to satisfy these requirements is an Entergy Corporation guarantee. Cash and letters of credit are also acceptable forms of credit support. As of September 30, 2026, based on power prices at that time, Entergy had $4 million of posted cash collateral.

In addition to the ability to post cash collateral, each of the Utility operating companies has uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. See Note 4 to the financial statements herein for discussion of these letter of credit facilities. As of September 30, 2026, Entergy Louisiana had $26 million of posted cash collateral, Entergy Mississippi had $6 million of posted cash collateral, and Entergy New Orleans had $1 million of posted cash collateral.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters. The following are updates 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. All of the nuclear generating plants owned and operated by Entergy’s Utility business are currently in Column 1, with the exception of Grand Gulf and River Bend, which are in Column 2.

In April 2026 the NRC issued a final significance determination and notice of violation for Grand Gulf, in which it finalized a “white” finding with “low safety significance” related to one of Grand Gulf’s emergency diesel generators, resulting in Grand Gulf’s placement in Column 2, effective first quarter 2026. In September 2026, Grand Gulf successfully completed an NRC supplemental inspection related to the emergency diesel generator issue. The NRC is expected to issue an inspection report in fourth quarter 2026 documenting Grand Gulf’s return to Column 1, effective third quarter 2026.

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’s accounting for nuclear decommissioning costs, utility regulatory accounting, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements. The following is an update to that discussion.

In May 2026 the FASB issued ASU 2026-02, “Environmental Credits and Environmental Credit Obligations (Topic 818),” which establishes guidance on recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The ASU requires an entity to recognize an environmental credit as an asset when it is probable that the environmental credit will be (1) used to settle an environmental credit obligation, (2) transferred in an exchange transaction, or (3) used in a nonreciprocal transfer. An environmental credit obligation is required to be recognized when an event occurring on or before the reporting date results in an environmental credit obligation under existing or enacted regulation. The ASU also requires various disclosures related to environmental credits and environmental credit obligations, including how credits are obtained and used, the nature of applicable regulatory compliance programs and related accounting policies, and financial statement impact. ASU 2026-02 is effective for Entergy beginning first quarter 2028. Entergy does not expect ASU 2026-02 to materially affect its results of operations, financial positions, or cash flows.