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

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

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the nuclear plants previously owned by Entergy’s non-utility operations, all of which have been sold as of June 2022, did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds for these plants were recognized in earnings with no offsetting regulatory liability/asset amount. Unrealized gains/(losses) recorded on the available-for-sale debt securities in the trust funds were recognized in the accumulated other comprehensive income component of shareholders’ equity. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $591 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$1,770	$19	$134

2022
Debt Securities	$1,655	$4	$201

As of December 31, 2023 and 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,885 million as of December 31, 2023 and $1,852 million as of December 31, 2022. As of December 31, 2023, available-for-sale debt securities had an average coupon rate of approximately 3.48%, an average duration of approximately 6.36 years, and an average maturity of approximately 10.82 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$134	$6	$840	$63
More than 12 months	999	128	666	138
Total	$1,133	$134	$1,506	$201

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$82	$62
1 year - 5 years	517	520
5 years - 10 years	504	461
10 years - 15 years	121	117
15 years - 20 years	179	161
20 years+	367	334
Total	$1,770	$1,655

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $661 million, $889 million, and $1,465 million, respectively. During the year ended December 31, 2023, there were gross gains of $1 million and gross losses of $37 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $2 million and $29 million, respectively, and gross losses of $46 million and $17 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$496.9	$2.4	$53.6

2022
Debt Securities	$470.7	$0.2	$69.3

The amortized cost of available-for-sale debt securities was $548.1 million as of December 31, 2023 and $539.8 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.66%, an average duration of approximately 6.02 years, and an average maturity of approximately 7.64 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $175 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$22.5	$0.4	$197.6	$18.8
More than 12 months	403.4	53.2	260.1	50.5
Total	$425.9	$53.6	$457.7	$69.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$45.3	$21.2
1 year - 5 years	132.2	159.7
5 years - 10 years	205.7	191.7
10 years - 15 years	39.9	38.0
15 years - 20 years	49.6	42.6
20 years+	24.2	17.5
Total	$496.9	$470.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $28.5 million, $42.1 million, and $57.6 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.1 million and gross losses of $2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.1 million and $2.5 million, respectively, and gross losses of $2.6 million and $0.6 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$788.1	$11.7	$37.4

2022
Debt Securities	$725.1	$3.5	$67.5

The amortized cost of available-for-sale debt securities was $813.9 million as of December 31, 2023 and $789.1 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an

average coupon rate of approximately 3.91%, an average duration of approximately 6.53 years, and an average maturity of approximately 13.16 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $251.3 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$69.8	$0.9	$409.9	$24.6
More than 12 months	356.1	36.5	207.5	42.9
Total	$425.9	$37.4	$617.4	$67.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$31.4	$33.6
1 year - 5 years	181.6	159.1
5 years - 10 years	170.0	161.7
10 years - 15 years	70.2	67.1
15 years - 20 years	90.2	83.3
20 years+	244.7	220.3
Total	$788.1	$725.1

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $318.6 million, $362.2 million, and $303.4 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.5 million and gross losses of $20.9 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $1.3 million and $6.8 million, respectively, and gross losses of $23 million and $4.1 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$485.2	$4.5	$42.5

2022
Debt Securities	$459.7	$0.7	$63.7

The amortized cost of available-for-sale debt securities was $523.2 million as of December 31, 2023 and $522.7 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 3.63%, an average duration of approximately 6.44 years, and an average maturity of approximately 10.27 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $164.2 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$42.1	$4.5	$231.9	$19.2
More than 12 months	239.1	38.0	198.0	44.5
Total	$281.2	$42.5	$429.9	$63.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$5.3	$6.8
1 year - 5 years	203.4	201.7
5 years - 10 years	128.6	107.1
10 years - 15 years	10.7	11.7
15 years - 20 years	38.8	35.0
20 years+	98.4	97.4
Total	$485.2	$459.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $314.3 million, $209.4 million, and $513.8 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.6 million and gross losses of $14.2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.2 million and $9.3 million, respectively, and gross losses of $10.7 million and $4 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Decommissioning Trust Fund [Text Block]

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

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

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the nuclear plants previously owned by Entergy’s non-utility operations, all of which have been sold as of June 2022, did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds for these plants were recognized in earnings with no offsetting regulatory liability/asset amount. Unrealized gains/(losses) recorded on the available-for-sale debt securities in the trust funds were recognized in the accumulated other comprehensive income component of shareholders’ equity. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $591 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$1,770	$19	$134

2022
Debt Securities	$1,655	$4	$201

As of December 31, 2023 and 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,885 million as of December 31, 2023 and $1,852 million as of December 31, 2022. As of December 31, 2023, available-for-sale debt securities had an average coupon rate of approximately 3.48%, an average duration of approximately 6.36 years, and an average maturity of approximately 10.82 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$134	$6	$840	$63
More than 12 months	999	128	666	138
Total	$1,133	$134	$1,506	$201

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$82	$62
1 year - 5 years	517	520
5 years - 10 years	504	461
10 years - 15 years	121	117
15 years - 20 years	179	161
20 years+	367	334
Total	$1,770	$1,655

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $661 million, $889 million, and $1,465 million, respectively. During the year ended December 31, 2023, there were gross gains of $1 million and gross losses of $37 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $2 million and $29 million, respectively, and gross losses of $46 million and $17 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$496.9	$2.4	$53.6

2022
Debt Securities	$470.7	$0.2	$69.3

The amortized cost of available-for-sale debt securities was $548.1 million as of December 31, 2023 and $539.8 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.66%, an average duration of approximately 6.02 years, and an average maturity of approximately 7.64 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $175 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$22.5	$0.4	$197.6	$18.8
More than 12 months	403.4	53.2	260.1	50.5
Total	$425.9	$53.6	$457.7	$69.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$45.3	$21.2
1 year - 5 years	132.2	159.7
5 years - 10 years	205.7	191.7
10 years - 15 years	39.9	38.0
15 years - 20 years	49.6	42.6
20 years+	24.2	17.5
Total	$496.9	$470.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $28.5 million, $42.1 million, and $57.6 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.1 million and gross losses of $2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.1 million and $2.5 million, respectively, and gross losses of $2.6 million and $0.6 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$788.1	$11.7	$37.4

2022
Debt Securities	$725.1	$3.5	$67.5

The amortized cost of available-for-sale debt securities was $813.9 million as of December 31, 2023 and $789.1 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an

average coupon rate of approximately 3.91%, an average duration of approximately 6.53 years, and an average maturity of approximately 13.16 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $251.3 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$69.8	$0.9	$409.9	$24.6
More than 12 months	356.1	36.5	207.5	42.9
Total	$425.9	$37.4	$617.4	$67.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$31.4	$33.6
1 year - 5 years	181.6	159.1
5 years - 10 years	170.0	161.7
10 years - 15 years	70.2	67.1
15 years - 20 years	90.2	83.3
20 years+	244.7	220.3
Total	$788.1	$725.1

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $318.6 million, $362.2 million, and $303.4 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.5 million and gross losses of $20.9 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $1.3 million and $6.8 million, respectively, and gross losses of $23 million and $4.1 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$485.2	$4.5	$42.5

2022
Debt Securities	$459.7	$0.7	$63.7

The amortized cost of available-for-sale debt securities was $523.2 million as of December 31, 2023 and $522.7 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 3.63%, an average duration of approximately 6.44 years, and an average maturity of approximately 10.27 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $164.2 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$42.1	$4.5	$231.9	$19.2
More than 12 months	239.1	38.0	198.0	44.5
Total	$281.2	$42.5	$429.9	$63.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$5.3	$6.8
1 year - 5 years	203.4	201.7
5 years - 10 years	128.6	107.1
10 years - 15 years	10.7	11.7
15 years - 20 years	38.8	35.0
20 years+	98.4	97.4
Total	$485.2	$459.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $314.3 million, $209.4 million, and $513.8 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.6 million and gross losses of $14.2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.2 million and $9.3 million, respectively, and gross losses of $10.7 million and $4 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Decommissioning Trust Fund [Text Block]

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

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

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the nuclear plants previously owned by Entergy’s non-utility operations, all of which have been sold as of June 2022, did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds for these plants were recognized in earnings with no offsetting regulatory liability/asset amount. Unrealized gains/(losses) recorded on the available-for-sale debt securities in the trust funds were recognized in the accumulated other comprehensive income component of shareholders’ equity. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $591 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$1,770	$19	$134

2022
Debt Securities	$1,655	$4	$201

As of December 31, 2023 and 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,885 million as of December 31, 2023 and $1,852 million as of December 31, 2022. As of December 31, 2023, available-for-sale debt securities had an average coupon rate of approximately 3.48%, an average duration of approximately 6.36 years, and an average maturity of approximately 10.82 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$134	$6	$840	$63
More than 12 months	999	128	666	138
Total	$1,133	$134	$1,506	$201

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$82	$62
1 year - 5 years	517	520
5 years - 10 years	504	461
10 years - 15 years	121	117
15 years - 20 years	179	161
20 years+	367	334
Total	$1,770	$1,655

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $661 million, $889 million, and $1,465 million, respectively. During the year ended December 31, 2023, there were gross gains of $1 million and gross losses of $37 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $2 million and $29 million, respectively, and gross losses of $46 million and $17 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$496.9	$2.4	$53.6

2022
Debt Securities	$470.7	$0.2	$69.3

The amortized cost of available-for-sale debt securities was $548.1 million as of December 31, 2023 and $539.8 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.66%, an average duration of approximately 6.02 years, and an average maturity of approximately 7.64 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $175 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$22.5	$0.4	$197.6	$18.8
More than 12 months	403.4	53.2	260.1	50.5
Total	$425.9	$53.6	$457.7	$69.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$45.3	$21.2
1 year - 5 years	132.2	159.7
5 years - 10 years	205.7	191.7
10 years - 15 years	39.9	38.0
15 years - 20 years	49.6	42.6
20 years+	24.2	17.5
Total	$496.9	$470.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $28.5 million, $42.1 million, and $57.6 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.1 million and gross losses of $2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.1 million and $2.5 million, respectively, and gross losses of $2.6 million and $0.6 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$788.1	$11.7	$37.4

2022
Debt Securities	$725.1	$3.5	$67.5

The amortized cost of available-for-sale debt securities was $813.9 million as of December 31, 2023 and $789.1 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an

average coupon rate of approximately 3.91%, an average duration of approximately 6.53 years, and an average maturity of approximately 13.16 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $251.3 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$69.8	$0.9	$409.9	$24.6
More than 12 months	356.1	36.5	207.5	42.9
Total	$425.9	$37.4	$617.4	$67.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$31.4	$33.6
1 year - 5 years	181.6	159.1
5 years - 10 years	170.0	161.7
10 years - 15 years	70.2	67.1
15 years - 20 years	90.2	83.3
20 years+	244.7	220.3
Total	$788.1	$725.1

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $318.6 million, $362.2 million, and $303.4 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.5 million and gross losses of $20.9 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $1.3 million and $6.8 million, respectively, and gross losses of $23 million and $4.1 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$485.2	$4.5	$42.5

2022
Debt Securities	$459.7	$0.7	$63.7

The amortized cost of available-for-sale debt securities was $523.2 million as of December 31, 2023 and $522.7 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 3.63%, an average duration of approximately 6.44 years, and an average maturity of approximately 10.27 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $164.2 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$42.1	$4.5	$231.9	$19.2
More than 12 months	239.1	38.0	198.0	44.5
Total	$281.2	$42.5	$429.9	$63.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$5.3	$6.8
1 year - 5 years	203.4	201.7
5 years - 10 years	128.6	107.1
10 years - 15 years	10.7	11.7
15 years - 20 years	38.8	35.0
20 years+	98.4	97.4
Total	$485.2	$459.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $314.3 million, $209.4 million, and $513.8 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.6 million and gross losses of $14.2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.2 million and $9.3 million, respectively, and gross losses of $10.7 million and $4 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Decommissioning Trust Fund [Text Block]

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

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

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, for unrealized gains/(losses) on investment securities, the Registrant Subsidiaries record an offsetting amount in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the nuclear plants previously owned by Entergy’s non-utility operations, all of which have been sold as of June 2022, did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds for these plants were recognized in earnings with no offsetting regulatory liability/asset amount. Unrealized gains/(losses) recorded on the available-for-sale debt securities in the trust funds were recognized in the accumulated other comprehensive income component of shareholders’ equity. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

As discussed in Note 14 to the financial statements, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $591 million. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$1,770	$19	$134

2022
Debt Securities	$1,655	$4	$201

As of December 31, 2023 and 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,885 million as of December 31, 2023 and $1,852 million as of December 31, 2022. As of December 31, 2023, available-for-sale debt securities had an average coupon rate of approximately 3.48%, an average duration of approximately 6.36 years, and an average maturity of approximately 10.82 years.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$134	$6	$840	$63
More than 12 months	999	128	666	138
Total	$1,133	$134	$1,506	$201

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$82	$62
1 year - 5 years	517	520
5 years - 10 years	504	461
10 years - 15 years	121	117
15 years - 20 years	179	161
20 years+	367	334
Total	$1,770	$1,655

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $661 million, $889 million, and $1,465 million, respectively. During the year ended December 31, 2023, there were gross gains of $1 million and gross losses of $37 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $2 million and $29 million, respectively, and gross losses of $46 million and $17 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$496.9	$2.4	$53.6

2022
Debt Securities	$470.7	$0.2	$69.3

The amortized cost of available-for-sale debt securities was $548.1 million as of December 31, 2023 and $539.8 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.66%, an average duration of approximately 6.02 years, and an average maturity of approximately 7.64 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $175 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$22.5	$0.4	$197.6	$18.8
More than 12 months	403.4	53.2	260.1	50.5
Total	$425.9	$53.6	$457.7	$69.3

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$45.3	$21.2
1 year - 5 years	132.2	159.7
5 years - 10 years	205.7	191.7
10 years - 15 years	39.9	38.0
15 years - 20 years	49.6	42.6
20 years+	24.2	17.5
Total	$496.9	$470.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $28.5 million, $42.1 million, and $57.6 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.1 million and gross losses of $2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.1 million and $2.5 million, respectively, and gross losses of $2.6 million and $0.6 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$788.1	$11.7	$37.4

2022
Debt Securities	$725.1	$3.5	$67.5

The amortized cost of available-for-sale debt securities was $813.9 million as of December 31, 2023 and $789.1 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an

average coupon rate of approximately 3.91%, an average duration of approximately 6.53 years, and an average maturity of approximately 13.16 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $251.3 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$69.8	$0.9	$409.9	$24.6
More than 12 months	356.1	36.5	207.5	42.9
Total	$425.9	$37.4	$617.4	$67.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$31.4	$33.6
1 year - 5 years	181.6	159.1
5 years - 10 years	170.0	161.7
10 years - 15 years	70.2	67.1
15 years - 20 years	90.2	83.3
20 years+	244.7	220.3
Total	$788.1	$725.1

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $318.6 million, $362.2 million, and $303.4 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.5 million and gross losses of $20.9 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $1.3 million and $6.8 million, respectively, and gross losses of $23 million and $4.1 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of December 31, 2023 and 2022 are summarized as follows:


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2023
Debt Securities	$485.2	$4.5	$42.5

2022
Debt Securities	$459.7	$0.7	$63.7

The amortized cost of available-for-sale debt securities was $523.2 million as of December 31, 2023 and $522.7 million as of December 31, 2022. As of December 31, 2023, the available-for-sale debt securities had an average coupon rate of approximately 3.63%, an average duration of approximately 6.44 years, and an average maturity of approximately 10.27 years.

The unrealized gains/(losses) recognized during the year ended December 31, 2023 on equity securities still held as of December 31, 2023 were $164.2 million. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$42.1	$4.5	$231.9	$19.2
More than 12 months	239.1	38.0	198.0	44.5
Total	$281.2	$42.5	$429.9	$63.7

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of December 31, 2023 and 2022 are as follows:


	2023	2022
	(In Millions)
Less than 1 year	$5.3	$6.8
1 year - 5 years	203.4	201.7
5 years - 10 years	128.6	107.1
10 years - 15 years	10.7	11.7
15 years - 20 years	38.8	35.0
20 years+	98.4	97.4
Total	$485.2	$459.7

During the years ended December 31, 2023, 2022, and 2021, proceeds from the dispositions of available-for-sale securities amounted to $314.3 million, $209.4 million, and $513.8 million, respectively. During the year ended December 31, 2023, there were gross gains of $0.6 million and gross losses of $14.2 million related to available-for-sale securities reclassified out of other regulatory liabilities/assets into earnings. During the years ended December 31, 2022 and 2021, there were gross gains of $0.2 million and $9.3 million, respectively, and gross losses of $10.7 million and $4 million, respectively, related to available-for-sale securities reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.