ENTERGY ARKANSAS, LLC
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 2, 2026
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Item 5. Other Information
Rule 10b5-1 Trading Arrangements
No director or officer of Entergy or any of the Registrant Subsidiaries adopted, modified, orterminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” during the three months ended September 30, 2026.
Retail Rate Regulation
The following is an update to the “Retail Rate Regulation” section of Part I, Item 1 of the Form 10-K.
Fuel and Purchased Power Cost Recovery
As discussed in the Form 10-K, to help stabilize electricity costs, Entergy Louisiana received approval from the LPSC to hedge its exposure to natural gas price volatility through the use of financial instruments. In May 2024, following the conclusion of its five-year hedging program, Entergy Louisiana filed an application with the LPSC for a permanent hedging program. The permanent gas hedging program would also utilize financial hedges for a portion of Entergy Louisiana’s non-industrial natural gas exposure. In May 2026, Entergy Louisiana and the LPSC staff filed a proposed stipulated settlement agreement for LPSC consideration. Under the terms of the proposed settlement, the LPSC would find that the proposed permanent gas hedging program was in the public interest and approve the implementation of a rider mechanism to refund the costs and benefits of the hedging program in customer rates. In June 2026 the LPSC approved the proposed settlement. A written order was issued in July 2026.
Regulation of the Nuclear Power Industry
The following are updates to the “Regulation of the Nuclear Power Industry” section of Part I, Item 1 of the Form 10-K.
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.
Environmental Regulation
The following are updates to the “Environmental Regulation” section of Part I, Item 1 of the Form 10-K.
National Ambient Air Quality Standards
Revised Fine Particulate (PM 2.5) NAAQS
As discussed in the Form 10-K, in March 2024 the EPA issued a final rule which revised the primary annual National Ambient Air Quality Standards (NAAQS) for fine particulate matter, also known as PM 2.5, from 12 ug/m 3 to 9 ug/m 3. Initial attainment/nonattainment designations for areas with available information were required within two years of the rule’s issuance. A coalition of 24 states challenged the 2024 rule in the D.C. Circuit; however, that challenge has been held in abeyance pending the agency’s reconsideration of the rule. In November 2025 the EPA filed a motion asking the D.C. Circuit to vacate the agency’s 2024 revision of the PM 2.5 NAAQS which lowered the primary standard to 9 ug/m 3. In June 2026, the D.C. Circuit denied the EPA’s motion to vacate and denied the petitions for review filed by the coalition. As a result, the 2024 standard of 9 ug/m 3 remains in effect. In July 2026, following the June 2026 decision by the D.C. Circuit, the United States District Court for the Northern District of California issued an order requiring the EPA to promulgate designations for the 2024 standard, for all areas of the United States, by February 6, 2027.
Regional Haze
As discussed in the Form 10-K, in June 2005 the EPA issued its final Clean Air Visibility Rule (CAVR) regulations that potentially could result in a requirement to install SO 2 and NOx pollution control technology as Best Available Retrofit Control Technology to continue operating certain of Entergy’s fossil generation units. The rule leaves certain CAVR determinations to the states. This rule establishes a series of 10-year planning periods, with states required to develop state implementation plans (SIPs) for each planning period, with each SIP including such air pollution control measures as may be necessary to achieve the ultimate goal of the CAVR by the year 2064. The various states are currently in the process of developing SIPs to implement the second planning period of the CAVR, which addresses the 2018-2028 planning period.
The Arkansas Department of Energy and Environment, Division of Environmental Quality (ADEQ) did not meet the July 31, 2021 SIP submission deadline, but subsequently submitted a final SIP to the EPA for review. The ADEQ reviewed Entergy’s Independence plant but determined that additional air emission controls would not be cost-effective considering the facility’s commitment to cease coal-fired combustion by December 31, 2030. In August 2026 the EPA issued a final approval of the ADEQ SIP submittal.
Greenhouse Gas Emissions
As discussed in the Form 10-K, in May 2024 the EPA finalized rules regulating greenhouse gas emissions from new combustion turbine electric generating units (EGUs) under Section 111(b) of the Clean Air Act and from certain existing coal- and gas-fired EGUs under Section 111(d) of the Clean Air Act.
For existing generating units, the rule established emission guidelines issued under Section 111(d) of the Clean Air Act and provided states with two years to develop a plan to implement the emission guidelines with respect to subject emission units within their state. The emission guidelines required reductions in CO 2 emissions from existing coal-fired generating units which plan to operate beyond January 1, 2032 and exempted coal-fired units which plan to permanently cease operations prior to this date. The emission guidelines also established CO 2 efficiency standards for existing gas-fired steam EGUs. These emission standards would apply beginning January 1, 2030. Entergy’s existing gas-fired steam generating units are expected to meet these CO 2 emission standards. Numerous lawsuits were filed in the D.C. Circuit challenging the final rule, and oral argument was held in December 2024. In September 2026 the EPA released a final rule repealing most provisions of the May 2024 rule including (1) the Phase 2 standard requiring carbon capture and sequestration for new combustion turbines because it is not an adequately demonstrated technology and (2) the standards for existing coal and gas units. The rule will be effective November 16, 2026. Thus, the only standards that remain are the Phase 1 standards for new gas combustion turbines. However, concurrent with the final rule, the EPA issued a supplemental proposal (2026 Proposal) to repeal all remaining Section 111 emissions standards for CO 2 emissions from EGUs. The EPA states in the 2026 Proposal that Section 111 does not authorize the agency to regulate greenhouse gas emissions from EGUs in response to global climate change concerns. Comments on the 2026 Proposal are due November 2, 2026. Litigation regarding the EPA’s partial repeal of the 2024 final rule is expected.
Coal Combustion Residuals
As discussed in the Form 10-K, in April 2015 the EPA published the final coal combustion residuals (CCR) rule (2015 CCR Rule) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes regulated under Resource Conservation and Recovery Act Subtitle D. The final regulations created new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria but excluded CCRs that are beneficially reused in certain processes. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed.
In May 2024 the EPA finalized a rule (2024 CCR Rule) establishing management standards for legacy CCR surface impoundments (i.e., inactive surface impoundments at inactive power plants) and establishing a new class of units referred to as CCR management units (CCRMUs) (i.e., non-containerized CCR located at a regulated CCR facility). CCR utilized in roadbeds and embankments is excluded from the CCRMU definition. Entergy does not have any legacy impoundments; however, the definition of CCRMUs includes on-site areas where CCR was beneficially used. This is contrary to the 2015 CCR Rule which exempted beneficial uses that met certain criteria. Under this expanded rule, all facilities were required to identify and delineate any CCRMU greater than one ton and submit a facility evaluation report by February 2026. Any potential requirements for corrective action or operational changes under the 2015 CCR Rule and the 2024 CCR Rule continue to be assessed. Notably, ongoing litigation has resulted in the EPA’s continuing review of the rules. In February 2026, as part of its stated deregulatory agenda, the EPA finalized a rule extending various deadlines, including the facility evaluation report Parts 1 and 2 deadlines by one year, until February 2027 and February 2028, respectively. In April 2026 the EPA issued a proposed rule amending several provisions of the existing CCR regulations including, among other things, a rescission or alternative revision of the CCRMU requirements, revisions to the legacy CCR surface impoundment provisions, and revisions to the beneficial use definition. Comments were due in June 2026 and final action is expected by the end of 2026.
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