Entergy Sells Natural Gas Business to Delta Utilities

News Summary

Entergy has finalized the sale of its natural gas distribution business to Delta Utilities, affecting approximately 204,000 customers in Baton Rouge and New Orleans. The transition includes the transfer of 3,700 miles of pipelines and the promise of job security for local employees. Delta Utilities has committed to maintaining current rates for 15 months and ensuring a smooth transition for customers, thereby allowing Entergy to focus on electric operations and future energy investments.

New Orleans

Entergy has successfully completed the sale of its natural gas distribution business to Delta Utilities, effective immediately. This transaction is a significant transition for nearly 204,000 gas customers in the Baton Rouge and New Orleans areas who will now receive their services from Delta Utilities. The company, based in New Orleans and backed by Bernhard Capital Partners, has assumed all day-to-day responsibilities for gas distribution operations previously managed by Entergy.

Drew Marsh, chair and CEO of Entergy, described the completion of this sale as a major milestone in the company’s strategic transition. The assets transferred to Delta Utilities include approximately 3,700 miles of natural gas pipelines and 2,200 miles of service lines. Entergy Louisiana’s gas business served about 96,000 homes and businesses in the Baton Rouge area, while Entergy New Orleans’ gas business catered to around 108,000 homes and businesses in New Orleans.

Regulatory Approvals

The transaction was given the green light after obtaining all required federal and state regulatory approvals. Relevant approvals came from several entities, including the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council. The approval process culminated in late February, when the Metro Council endorsed the transfer of Entergy’s natural gas franchise rights in Baton Rouge.

Focus on Electric Operations

This sale allows Entergy to concentrate on its electric operations, further paving the way for investments in a more resilient energy future. Both Entergy and Delta Utilities are collaborating to ensure a seamless transition for gas customers in Baton Rouge and New Orleans. Delta Utilities has committed to maintaining current rate structures and ensuring that there will be no service interruptions as the transition unfolds.

Job Creation and Employee Transition

In a move aimed at boosting local employment, Delta Utilities has announced the creation of 100 new corporate jobs to support the operational transition. Furthermore, the company has extended job offers to 200 Entergy employees, all of whom have accepted the opportunity to stay in their roles. This effort not only aids in maintaining service continuity but also supports local employment in the region.

Rate Stability

Delta Utilities has also pledged not to increase rates for 15 months following the acquisition, providing additional reassurance to customers amid the transition. The initial proposal for the sale was made in October 2023, and after a meticulous approval process, it has paved the way for Delta Utilities to take over the operations seamlessly.

Background of Delta Utilities

Delta Utilities is not a newcomer to the natural gas sector. The company previously acquired CenterPoint’s natural gas assets in Louisiana and Mississippi in April 2025, further establishing its footprint in the region. However, the financial terms of the recent sale with Entergy have not been publicly disclosed.

The completion of this sale marks a pivotal shift in the delivery of natural gas services to residents and businesses in the Baton Rouge and New Orleans areas, and the subsequent operational transition will be closely monitored by both the companies involved and local regulatory authorities.

Deeper Dive: News & Info About This Topic

• Entergy News
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• Industry Report
• Wikipedia: Natural Gas Distribution
• Encyclopedia Britannica: Natural Gas