ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning and asset retirement costs line item on the balance sheets.

These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. The accretion will continue through the completion of the asset retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.

In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs expected to be recovered in rates:


	December 31,
	2022	2021
	(In Millions)
Entergy Arkansas	$267.1	$224.3
Entergy Louisiana	$418.8	$848.2
Entergy Mississippi	$159.4	$136.8
Entergy New Orleans	$56.3	$91.7
Entergy Texas	$62.9	$98.1
System Energy	$94.4	$89.7

As of December 31, 2022 and 2021, the regulatory asset for removal costs for the Utility operating companies includes amounts related to storm restoration costs. See Note 2 to the financial statements for further discussion of storm restoration costs and requested recovery.

The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2022 and 2021 by Entergy were as follows:


	Liabilities as of December 31, 2021	Accretion	Change in Cash Flow Estimate	Spending	Dispositions		Liabilities as of December 31, 2022
	(In Millions)
Entergy	$4,757.1	$236.0	($0.5)	($13.3)	($707.8)		$4,271.5

Utility
Entergy Arkansas	$1,390.4	$82.3	$—	$—	$—		$1,472.7
Entergy Louisiana	$1,653.2	$84.1	$2.8	($3.3)	$—		$1,736.8
Entergy Mississippi	$10.3	$0.6	$—	($3.1)	$—		$7.8
Entergy New Orleans	$4.0	$0.1	$—	($4.1)	$—		$—
Entergy Texas	$8.5	$0.5	$2.1	$—	$—		$11.1
System Energy	$1,007.6	$40.2	($5.4)	$—	$—		$1,042.5

Entergy Wholesale Commodities
Big Rock Point	$42.0	$2.0	$—	($1.2)	($42.8)	(a)	$—
Palisades	$640.4	$31.0	$—	($1.6)	($669.8)	(a)	$—
Other (b)	$0.6	$—	$—	$—	$—		$0.6


	Liabilities as of December 31, 2020	Accretion	Spending	Dispositions		Liabilities as of December 31, 2021
	(In Millions)
Entergy	$6,469.5	$317.9	($33.2)	($1,997.1)		$4,757.1

Utility
Entergy Arkansas	$1,314.2	$77.7	$—	($1.5)		$1,390.4
Entergy Louisiana	$1,573.3	$79.9	$—	$—		$1,653.2
Entergy Mississippi	$9.8	$0.5	$—	$—		$10.3
Entergy New Orleans	$3.8	$0.2	$—	$—		$4.0
Entergy Texas	$8.1	$0.4	$—	$—		$8.5
System Energy	$968.9	$38.7	$—	$—		$1,007.6

Entergy Wholesale Commodities
Big Rock Point	$41.1	$3.4	($2.5)	$—		$42.0
Indian Point 1	$246.6	$8.8	($1.3)	($254.1)	(a)	$—
Indian Point 2	$839.8	$28.9	($25.1)	($843.6)	(a)	$—
Indian Point 3	$869.4	$29.1	($0.6)	($897.9)	(a)	$—
Palisades	$594.1	$50.1	($3.8)	$—		$640.4
Other (b)	$0.5	$0.1	$—	$—		$0.6

(a) See Note 14 to the financial statements for discussion of the sale of the Indian Point Energy Center in May 2021 and the sale of Palisades in June 2022.

(b) See “Coal Combustion Residuals” below for additional discussion regarding the asset retirement obligations related to coal combustion residuals management.

Nuclear Plant Decommissioning

Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may vary from the estimates because of the timing of plant decommissioning, regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment.

In the third quarter 2022, System Energy recorded a revision to its estimated decommissioning cost liability for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $5.4 million reduction in its decommissioning cost liability, along with a corresponding reduction in the related asset retirement obligation cost asset that will be depreciated over the remaining life of the unit.

NRC Filings Regarding Trust Funding Levels

Plant owners are required to provide the NRC with a biennial report (annually for units that have shut down or will shut down within five years), based on values as of December 31, addressing the owners’ ability to meet the NRC minimum funding levels. Depending on the value of the trust funds, plant owners may be required to take steps, such as providing financial guarantees through letters of credit or parent company guarantees or making additional contributions to the trusts, to ensure that the trusts are adequately funded and that NRC minimum funding requirements are met.

As nuclear plants individually approach and begin decommissioning, filings will be submitted to the NRC for planned shutdown activities. These filings with the NRC also determine whether financial assurance may be required in addition to the nuclear decommissioning trust fund.

Coal Combustion Residuals

In June 2010 the EPA issued a proposed rule on coal combustion residuals (CCRs) that contained two primary regulatory options: (1) regulating CCRs destined for disposal in landfills or received (including stored) in surface impoundments as so-called “special wastes” under the hazardous waste program of Resource Conservation and Recovery Act (RCRA) Subtitle C; or (2) regulating CCRs destined for disposal in landfills or surface impoundments as non-hazardous wastes under Subtitle D of RCRA. Under both options, CCRs that are beneficially reused in certain processes would remain excluded from hazardous waste regulation. In April 2015 the EPA published the final CCR rule with the material being regulated under the second scenario presented above - as non-hazardous wastes regulated under RCRA Subtitle D. The final regulations create new compliance requirements including modified storage, new notification and reporting practices, product disposal considerations, and CCR unit closure criteria. Entergy believes that on-site disposal options will be available at its facilities, to the extent needed for CCR that cannot be transferred for beneficial reuse. In December 2016 the Water Infrastructure Improvements for the Nation Act (WIIN Act) was signed into law, which authorizes states to regulate coal ash rather than leaving primary enforcement to citizen suit actions. States may submit to the EPA proposals for permit programs.

In the third quarter 2022, revisions to the Big Cajun 2 coal combustion residuals asset retirement obligations were made as a result of revised closure and post-closure cost estimates. The revised estimates resulted in increases of $2.8 million at Entergy Louisiana and $2.1 million at Entergy Texas in decommissioning cost liabilities, along with corresponding increases in related asset retirement obligations cost assets that will be depreciated over the remaining useful life of the unit.