Entergy Sells Louisiana Natural Gas Distribution to Delta Utilities

Categories: Louisiana Business NewsLouisiana NewsLouisiana Real Estate

Infrastructure involved in the transition of natural gas distribution from Entergy to Delta Utilities.

News Summary

Entergy has completed the sale of its natural gas distribution business in Louisiana to Delta Utilities for $484 million. The transition, approved by regulatory bodies, transfers operations serving 204,000 customers along with extensive infrastructure. Entergy will focus on enhancing its electric services while ensuring safe, reliable gas service during the transition period, with Delta Utilities managing the daily operations.

Baton Rouge, Louisiana – Entergy has finalized the sale of its natural gas distribution business in Louisiana to Delta Utilities for a deal valued at $484 million. The transition, which takes effect immediately, has received all necessary approvals from key regulatory bodies, including the Louisiana Public Service Commission, the City of Baton Rouge/East Baton Rouge Parish Metropolitan Council, and the New Orleans City Council.

Delta Utilities, which is supported by Bernhard Capital Partners, will oversee the daily operations of the gas service business that previously catered to approximately 96,000 homes and businesses in the Baton Rouge area, along with an additional 108,000 customers in New Orleans through Entergy New Orleans’ gas division.

The transaction entails the transfer of an extensive network of infrastructure, including around 3,700 miles of natural gas pipelines and 2,200 miles of service lines. This comprehensive transfer aims to enable Entergy to concentrate on enhancing its electric utility services across the region.

As the transition unfolds, Entergy has assured current gas customers that safe and reliable service will continue under the management of Delta Utilities. Customers are not required to take immediate action following the switch; however, they will need to create a new online account with Delta Utilities once the switch is finalized, which is expected to happen around July 2025.

Some services, such as deposits, medical emergency certifications, and collective billing arrangements, will automatically transfer over to Delta Utilities, ensuring a seamless adjustment for existing customers. Meanwhile, Entergy will retain the capacity to respond to any natural gas emergencies until the transition period is completely finalized.

Entergy Corporation focuses on delivering energy to approximately 3 million customers across several states. Following this sale, the company plans to shift its operational focus predominantly toward its electrical services, enhancing its ability to serve the energy needs of its customers more effectively.

This strategic move marks a significant milestone for Entergy as it adapts to the evolving energy landscape while allowing Delta Utilities to step into a vital role within Louisiana’s energy infrastructure. The collaboration between Entergy and Delta Utilities is expected to bring added efficiencies and improved service delivery for the communities affected by the transition.

As the gas distribution landscape evolves, stakeholders remain optimistic about the potential benefits this sale could bring, not only for the companies involved but also for the customers who rely on safe and consistent energy services in their daily lives.