On December 20 2024, Entergy reached a settlement with the U.S. Securities and Exchange Commission (the “SEC”) to resolve the previously disclosed SEC investigation into the company’s internal controls and books and records concerning potential surplus materials and supplies inventory.
Under the settlement terms, in which Entergy neither admits nor denies the SEC’s findings, the company will pay a $12 million civil penalty, which previously had been fully accrued. The settlement is subject to approval by a U.S. District Court.
As part of its inventory management processes, Entergy had previously engaged outside consultants to help optimize the company’s materials and supplies inventory. More recently, the company reevaluated and strengthened its processes and controls for identifying and dispositioning surplus materials and supplies. Entergy has now implemented these enhanced processes and controls, which did not result in a material change in the value of its materials and supplies inventory. As part of the settlement, Entergy will engage an independent consultant to evaluate these enhanced processes and controls.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
Entergy Arkansas, LLC
Entergy Louisiana, LLC
Entergy Mississippi, LLC
Entergy New Orleans, LLC
Entergy Texas, Inc.
System Energy Resources, Inc.
By: /s/ Marcus V. Brown Marcus V. Brown Executive Vice President and General Counsel